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ChapterChapter1414

Strategies For Growth And Strategies For Growth And Managing The Implications Managing The Implications

Of GrowthOf Growth

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Growth StrategiesGrowth Strategies

PenetrationPenetration Product Product DevelopmentDevelopment

Market Market DevelopmentDevelopment DiversificationDiversification

MarketMarket

ProductProduct

ExistingExisting

NewNew

NewNewExistingExisting

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StrategiesStrategiesPenetration- Growth By Selling More Of Penetration- Growth By Selling More Of

Existing Product To Existing CustomersExisting Product To Existing CustomersMarket DevelopmentMarket Development

New Geographic MarketNew Geographic MarketNew Demographic MarketNew Demographic MarketNew Product UseNew Product Use

Product Development- Sell New Products Product Development- Sell New Products To Existing CustomersTo Existing Customers

Diversification- Sell New Product To New Diversification- Sell New Product To New MarketMarket

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Product IntegrationProduct Integration

Raw Materials ProducerRaw Materials Producer

Raw Materials WholesalerRaw Materials Wholesaler

ManufacturerManufacturer

Finished Goods WholesalerFinished Goods Wholesaler

RetailerRetailer

CustomerCustomer

Backward Backward IntegrationIntegration

Forward Forward IntegrationIntegration

Horizontal Horizontal IntegrationIntegration

Horizontal Horizontal IntegrationIntegration

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Pressures On Firm GrowthPressures On Firm Growth

1.1. Existing Financial ResourcesExisting Financial Resources

2.2. Human ResourcesHuman Resources

3.3. Management Of EmployeesManagement Of Employees

4.4. Entrepreneur’s TimeEntrepreneur’s Time

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Overcoming Overcoming Financial Resources PressureFinancial Resources Pressure•Manage Cash Flow- Budget vs. Manage Cash Flow- Budget vs. ActualActual•Manage InventoryManage Inventory•Manage Fixed AssetsManage Fixed Assets•Manage Costs/Profits- Compare Manage Costs/Profits- Compare Actual vs. Standard PercentagesActual vs. Standard Percentages• TaxesTaxes•Record KeepingRecord Keeping

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Inventory ValuationInventory Valuation

FIFO- First Items In Inventory = First FIFO- First Items In Inventory = First SoldSold

LIFO- Last Items In Inventory = First LIFO- Last Items In Inventory = First SoldSold

Convert To LIFO When:Convert To LIFO When:Anticipate Increased Labor, Materials, Anticipate Increased Labor, Materials,

Production CostsProduction CostsBusiness/Inventory GrowingBusiness/Inventory GrowingComputer-Assisted Inventory ControlComputer-Assisted Inventory ControlBusiness Is ProfitableBusiness Is Profitable

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OvercomingOvercoming Human Resources PressuresHuman Resources Pressures

Prepare Job DescriptionsPrepare Job DescriptionsItemize SpecificationsItemize SpecificationsOutsource HR ResponsibilitiesOutsource HR Responsibilities

RecruitingRecruiting HiringHiring Establish Benefit ProgramsEstablish Benefit Programs PayrollPayroll FiringFiring Permanent vs. Part-TimePermanent vs. Part-Time Corporate CultureCorporate Culture

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OvercomingOvercoming Employee Management PressureEmployee Management Pressure

Participative ManagementParticipative ManagementEstablish Team SpiritEstablish Team SpiritCommunicate- Open & FrequentCommunicate- Open & FrequentProvide FeedbackProvide FeedbackDelegateDelegateContinuous TrainingContinuous Training

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Overcoming Entrepreneur’s Overcoming Entrepreneur’s Time Management PressureTime Management Pressure

Increase ProductivityIncrease ProductivityIncrease Job SatisfactionIncrease Job SatisfactionImprove Interpersonal Improve Interpersonal RelationshipsRelationships

Reduce Time Reduce Time Anxiety/TensionAnxiety/Tension

Better HealthBetter Health

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Time Management PrinciplesTime Management Principles

1.1. Desire- Willpower To Optimize TimeDesire- Willpower To Optimize Time2.2. Effectiveness- Focus On Important Effectiveness- Focus On Important

IssuesIssues3.3. Analysis- Determine Where Time Is Analysis- Determine Where Time Is

Being WastedBeing Wasted4.4. Teamwork- Small Amount Of Time Can Teamwork- Small Amount Of Time Can

Be ControlledBe Controlled5.5. Prioritize- Deal With Most Important Prioritize- Deal With Most Important

Tasks FirstTasks First6.6. Reanalysis- Review Process, DelegateReanalysis- Review Process, Delegate

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Growth CategoriesGrowth Categories

Unused Unused PotentialPotential Actual GrowthActual Growth

Little Little PotentialPotential ConstrainedConstrained

Professional Professional ManagementManagement

Growth Growth AspirationsAspirations

HighHigh

LowLow

YesYesNoNo