1. Burke Lodge Joe Baesuvan Marty Onstot Christina Kinney GROWTH STRATEGIES

2. Agenda 3 Groups The end Visual Introduction Growth Strategies Case Analysis Jeopardy Q&A

3. Our Product

4. Scaling

5. Our Product

6. Duplicating

7. Our Product

8. Granulating +

9.  Growing select business cells  Often known as conglomerates ◦ Example company – GE, Johnson & Johnson, SAP

10. ◦ Balance the old and new  Balance the informal and formal ◦ Evaluate and Monitor ◦ Learn from customers, partners and competitors

11. Granulation works best when: - Limits of scaling and duplicating have been reached - New technology - Company is mature

12.  Doing more of what you’re good at ◦ Example company – Ford, Microsoft, Nike

13. ◦ Invest Aggressively ◦ Specialize and Standardize ◦ Hire the Right Mix ◦ Adapt the Structures ◦ Find ways to learn from customers early

14.  Scaling works best when: ◦ Market is large, potential for rapid growth and focused product line ◦ Unique value in customers view ◦ Distribution is low cost

15.  Repeat the business model in new regions ◦ Example company – IKEA

16. ◦ Balance Standardization and Adaptation ◦ Hire Flexible, Independent Managers ◦ Duplicate key parts of the infrastructure  Black boxing ◦ Duplicate Entrepreneurial Knowledge  Devoted practice ◦ Be aware of the limitations

17.  Duplicating works best when: ◦ Physical presence coupled with repetitious business model ◦ Need for better distribution ◦ Can adapt experience easily

18. ◦ Using a combination of any of the three strategies simultaneously ◦ Example company – SAP

19. - Begin with a birds eye view of the comparative strengths of each of the three strategies o Scaling = Simple o Duplicating = More complex o Granulation = Most demanding - Large companies with different business units in different stages o May use all three simultaneously - Most companies it is best to use all three sequentially, with some overlap

20. - Managing and sharing knowledge is essential o Ex: SAP with training program o Ex: IKEA with their “knowledge marines” - Committed to continued growth o If not steadily growing, steadily dying

21. Zipcar is growing rapidly

22. Cannot keep up with demand in Boston Staff is working overtime There are still bugs in the system Rumors of competitors in other cities Google is interested in developing GPS technology for a Google Maps application We have a VC who is ready to invest $10m People are taking public transportation in record #s Attrition has been higher than expected Complaints have surfaced re: customer service

23. Present an argument for your case. Prepare questions for the other strategies and defend your own case 1 2 3 4 5

25.  What are the three strategies for managing fast growth? Describe them.  Describe the differences between Scaling and Duplicating.  Describe the conditions that must exist in the market for each of the three growth strategies to work.  Identify and describe the five components that must be executed to successfully employ a Scaling growth strategy.