Flashcards in 1 Planning for Growth Deck (18)
what is strategic planning?
A long term view of where the business is going and how it will get there, typically over the next two to five years. Businesses need to engage in this to remain competitive and continue to grow
what is domestic expansion?
expansion in the nation of origin
what is global expansion?
expansion outside the country of origin
what are some examples of expansion strategies?
niche markets, innovation, research and development, new and emerging technologies
what are some examples of modes of entry?
importing and exporting, international agents, licensing, strategic alliances, outsourcing and offshoring
what are some examples of human resources strategies?
employer of choice, work-life balance, fostering intrepreneurship, workplace diversity, inclusive workplaces and leadership styles
what are some examples of financing options
private equity, going public, money in capital markets, dividends and government grants
what are the side effects of a business reaching maturity?
the revenue plateaus, the revenue could even start to decline with competition and sales may decrease
what is a business strategy?
the means by which a business sets out to achieve its goals and objectives
what is a growth strategy?
a specific strategy affecting new or existing products and markets, designed to increase market share of a business
what is vertical growth?
the adaption of a business products and services to increase revenue from the existing market
what is horizontal growth?
the replication or expansion of a business product, service or model into new markets
what is the Ansoff matrix?
a strategic planning tool which is used to help a business identify opportunities to grow its revenue
what are the four main areas of the growth stage?
market penetration, market development, product development and diversification
what is market penetration?
existing products in the existing market
what is market development
existing products in a new market
what is product development
new product in an existing market