Ch 13 - CHAPTER 13 PREPARING FOR AND EVALUATING THE...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 13 PREPARING FOR AND EVALUATING THE CHALLENGES OF GROWTH Sustained growth - growth in both revenues and profits over an extended period of time Reasons for Firm Growth (6) 1. Capturing Economies of Scale - when increasing production lowers the average cost of each unit produced Economies of scale can lead to sustained growth esp in industries/markets where customers value low price. Economis of Scope - 2. Executing a Scalable Business Model – when increased revenues cost less to deliver than current revenues, resulting in increased profit margins sales increase ex.s computer software and music 3. Market Leadership - a firm that is the number one or the number two firm in an industry or niche market in terms of sales volume. Becoming a market leader provides additional benefits that can further increase revenues and sale 4. Influence, Power, and Survivability - larger businesses are generally better able to influence, for ex., the industry (set standards) and suppliers (favorable terms) and draw on a broader range of talent w/in the fir 5. To Accommodate the Growth of Key Customers 6. Ability to Attract and Retain Talented Employees – allows a firm to, for ex., retain key employees through promotional
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/28/2011 for the course MNGT 305 taught by Professor Chadwick during the Spring '11 term at Nicholls State.

Page1 / 4

Ch 13 - CHAPTER 13 PREPARING FOR AND EVALUATING THE...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online