New+Venture+slides+day+9-+Chapter+13+and+Chapter+14

New+Venture+slides+day+9-+Chapter+13+and+Chapter+14 -...

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Professor Joshua Hernsberger The Paul Merage School of Business University of California, Irvine Preparing for and Evaluating the Challenges of Growth
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Prepare for Growth Sustained Growth Growth In Both Revenues And Profits Over An Extended Period Of Time. Appreciate The Nature Of Business Growth Not All Businesses Have The Potential To Be Aggressive Growth Firms. A Business Can Grow Too Fast. Business Success Doesn’t Always Scale.
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Prepare for Growth Stay Committed To A Core Strategy It Is Important That A Business Not Lose Sight Of Its Core Strategy As It Prepares To Grow. If A Business Becomes Distracted Or Starts Pursuing Every Opportunity For Growth That’s Its Presented, It Can Easily Stray Into Areas Where Its At A Disadvantage.
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Prepare for Growth Plan For Growth A Firm Should Establish Growth-related Plans. Writing A Business Plan Greatly Assists In Preparing Growth Plans. It’s Also Important For A Firm To Determine, As Soon As Possible, What Its Growth Strategies Will Be.
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Reasons for Growth Reason For Growth Explanation Economics Of Scale Economics Of Scope Occur When Increasing Production Lowers The Average Cost Of Each Unit Produced. Occur When The Scope (Or Range) Of A Firm’s Operations Creates Efficiencies.
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Reasons for Growth Reason For Growth Explanation Market Leadership Influence, Power, And Survivability Occurs When A Firm Holds The Number One Or The Number Two Position In An Industry Or Niche Market In Terms Of Sales Volume. Larger Businesses Usually Have More Influence And Power Than Smaller Firms.
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Reasons for Growth Reason For Growth Explanation Accommodate The Growth Of Key Customers Attract And Retain Talented Employees Sometimes Firms Are Compelling To Grow To Accommodate The Growth Of A Key Customer. Growth Is A Firm’s Primary Mechanism To Generate Promotional Opportunities For Employees.
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Managing Growth It’s Important For A Business Owner To Know The Stages Of Growth, Along With The Unique Opportunities And Challenges That Each Stage Entails.
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This note was uploaded on 01/31/2012 for the course MGMT 190 taught by Professor Joshuahernsberger during the Summer '11 term at UC Irvine.

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