09 - Managing Growth Phase
-
Upload
harris-turino -
Category
Documents
-
view
222 -
download
0
Transcript of 09 - Managing Growth Phase
-
7/31/2019 09 - Managing Growth Phase
1/15
Managing Growth Phase
Dr. Harris Turino
-
7/31/2019 09 - Managing Growth Phase
2/15
Agenda
Growth Phase of CompanyLook inside the internal of organization
Growth and Innovation Growth and Diversification
-
7/31/2019 09 - Managing Growth Phase
3/15
Part I:
Growth Phase of Company
-
7/31/2019 09 - Managing Growth Phase
4/15
Introduction
Growth is the biggest challenge for company.
When company grow, many parties enjoy
prosperity. In the same time, company also faces
higher complexity than before.o More employees to be supervisedo More and various problems to be managedo More formalization reduce flexibility
o More competitive forces, etc.
In the certain level, this complexity triggers muchproblems that influence crisis.
-
7/31/2019 09 - Managing Growth Phase
5/15
Existence Survival Success Take-off
ResourceMaturity
-
7/31/2019 09 - Managing Growth Phase
6/15
Phase I: Existence
Start-up business that establishes through entrepreneurscreativity in identifying opportunity.
Organization Structure : Simple, informal Management Style : Direct supervision, individual
Formalization : Nonexistent minimal
Focus:o Make and sell productso Get more customers (market penetration)
Challenge:o how to get enough customers and expand sales broadero how to generate enough money to cover cash demand
Crisis : LEADERSHIP
-
7/31/2019 09 - Managing Growth Phase
7/15
Phase II: Survival
Young business that grow through direction
Organization Structure : More functional Management Style : Supervised supervision, central Formalization : Minimal
Focus:o Efficiency of operationo Build competitive position
Challenge:o how to generate enough cash to break even in the short-run (and
economic of scale)o how to generate enough cash to stay in in the business, and
finance future growth
Crisis :AUTONOMY
-
7/31/2019 09 - Managing Growth Phase
8/15
Phase III: Success
Completely business entity that grow through delegation
Organization Structure : Functional, more decentralized Management Style : Functional delegation Formalization : Basic and developing
Focus:o Market expansiono Product development
Challenge:o Disengagement of owner (delegate to professional), or head for
growtho How to get resources to achieve faster growth
Crisis : CONTROL
-
7/31/2019 09 - Managing Growth Phase
9/15
Phase IV: Take-Off
Corporation that grow through coordination among SBUs.
Organization Structure : Divisional and decentralized Management Style : Watchdog Formalization : Many and maturing
Focus:o Consolidate the organizationo Product development
Challenge:o How to grow rapidly and how to finance ito How to overcome owners power syndrome
Crisis : RED TAPE (BUREAUCRACY)
-
7/31/2019 09 - Managing Growth Phase
10/15
Phase V: Resource Maturity
Corporate entrepreneur that grow through collaboration.
Organization Structure : Divisional, with team-based,matrix, and flatter.
Management Style : Participative, mutual adjust.
Formalization : Extensive Focus:
o Problem solving and innovation
Challenge:o How to consolidate and control the financial gain brought on by
rapid growth.o How to retain the advantage of small size (flexible and
entrepreneurial spirit)
Crisis : ??? (psychological saturation)
-
7/31/2019 09 - Managing Growth Phase
11/15
Existence Survival Success Take-off
ResourceMaturity
-
7/31/2019 09 - Managing Growth Phase
12/15
-
7/31/2019 09 - Managing Growth Phase
13/15
Success in Every Phase
Growth has two faces: prosperity and pain (crisis).
Solution for every crisis triggers the next crisis, andthreaten the company existence.
Not every company can follow the growth phase linearly.
Some companies fail to continue to the next phase (fail toovercome crisis).
They could be:o Back to the previous phaseo Sell to other investorso Bankrupt (fold the operation)
-
7/31/2019 09 - Managing Growth Phase
14/15
-
7/31/2019 09 - Managing Growth Phase
15/15
Thank You