Growth seems to be an almost necessary stimulant to most of the business firms. Business concerns seek to become bigger each year in terms of net worth ,total assents , market share etc. Major options if the strategies as adopted by business enterprises areas follows : stability strategy , growth strategy, retrenchment strategy and combination strategy. These alternatives are called grand strategy alternatives. With each category , the strategy planners may consider several sub options or sub strategies.
Here is what growth strategy is…
Many enterprises prefer the strategy of expansion and growth . They are not satisfied with their present position .when the environment is dynamic, managers may find it necessary to expand and diversify the firm’s operations. Growth strategy is generally used in dynamic industries with rapidly changing technologies . Business growth means an increase in scale of operations and resources of a firm usually accompanied by increase in its size.
The basic reason underlying growth strategies may be cited as follows:
- Growth is often a cherished cultural value. A company that is not expanding is said to be falling behind.
- Growth is associated with strong managerial motivation . Large size often means hefty pay packages.
- In industries which are subjected to frequent technological changes and other external conditions, growth is necessary for survival.
- Lust if economic and social power of businessmen can only be satisfied by creating industrial empires.
- Growth of a firm up to a certain stage may lead to the economies in production, purchase, marketing,finance etc.