1. Strategies for Growth and Managing the Implications of Growth
Chapter 14

2. Growth Strategies Penetration Product Development Market Development
Existing New
Existing
MARKET
New
Penetration
Product Development
Market Development
New Geographic Market
New Demographic Market
New Product Use
Diversification
Backward Integration
Forward Integration
Horizontal Integration

3. Growth Why important? Advantages Problems
Pressure on existing financial resources
Pressure on human resources
Pressure on Management of employees
Pressure on entrepreneur’s time

4. Overcoming Financial Pressures
Three Methods
Financial control
Managing inventory
Keep good records

5. Overcoming Financial Pressures
Watch the Financial Statements
Look at expected v. actual
Sensitivity analysis

7. Overcoming Financial Pressures
Managing Inventory
FIFO v. LIFO
Why use LIFO?
Managing Fixed Assets
Why lease?
Managing Costs and Profits
What caused increases and decreases?
Percentages

9. Overcoming Financial Pressures
Taxes
Withholding
Federal
State
Social Security
Medicare
Record-Keeping
Software
Importance

10. Overcoming Pressures on Existing Human Resources
Initial Company HR
Permanent v. Part-time Employees
Which is better?
Firing
Processes
Culture
Affected by human resources

11. Overcoming Pressures on Management of Employees
Participative Management Style
Advantages
Establish a Team Spirit
Communicate with Employees
Provide Feedback
Delegate Responsibility
Provide Continuous Training

12. Time Management Why study it? Increased productivity
Increased job satisfaction
Improved interpersonal relationships
Reduced time anxiety and tension
Better health

13. Principles of Time Management
Principle of Desire
Recognize the problem and need to change
Principle of Effectiveness
Focus on important items
Principle of Analysis
Look at where time is allotted inefficiently

14. Principles of Time Management
Principle of Teamwork
Only small amount is under your control
Principle of Prioritized Planning
Categorize by level of importance
Principle of Reanalysis
Review one’s time management process

15. Entrepreneurs and Firm Growth
ENTREPRENEUR’S GROWTH ASPIRATIONS
No Yes
High
ABILITY
Low
Unused Potential
Actual Growth
Little Potential
Constrained