HOW TO ACHIEVE ORGANIZATIONAL GROWTH

ACHIEVE ORGANIZATIONAL GROWTH NOW!

It is the cravings of all success oriented business owners, whether small or big to know how to achieve organizational growth. Every management team desires organizational growth, but many are often frustrated because they lack the best approaches to employ. While there are many academic models depicting the growth stages of a company, I owe you a duty in this article to suggest real-world ways for companies large and small to achieve organizational growth. Armed with this information, you can achieve the growth you have long desire.

The following ways are pragmatic and result oriented methodology for achieving organizational growth.

· Research and enter new markets
· New product/service development
· Licensing
· Sell off old winners
· Partnership/Merger
· Acquisition
· Venture capital/IPOs 

 

Let us at this moment look at the above points in a more detailed form.

RESEARCH AND ENTER NEW MARKETS.

Market research is an effective way to increase organizational relevance and or growth. Research and entering new markets is an obvious way to expand a company. Look around your niche and create a niche within your niche. Creating additional demand for a firm's product or service, especially in a market where competition has yet to fully develop, is a much sought after experience for growing enterprises.

Research markets outside your location, seek and explore any prospected opportunity. Do not remain a local champion, and limit yourself. No business enterprises or organization can achieve growth just concentrating in one market. Take a close look at every successful business organization; you will discover to your amazement that they create products in diversities to adequately satisfy a hungry market.

There is more you can do successfully other than what you currently engage in at the moment. If you are operating offshore look for markets in onshore. Stretch your potential and explore all markets within your niche. Be hungry for feeling your market with useful products and resourceful services. For example, as more and more companies move parts of their operations off-shore, more opportunity and awareness is created for other companies to serve the markets in those foreign locations. You can key into those areas to achieve organizational growth.

NEW PRODUCT / SERVICE DEVELOPMENT

Testing the market and evaluating product performance is a key factor in establishing organizational growth. Some of the strategies suggested for organizational growth benefit the firm in generating cash. Product or service development is a smart place to use that cash in order to create future growth for your company. Many successful companies reinvest part of their profits in developing new products, either completely new products or extensions or adaptations of existing ones. It is a common truth that if you want to be successful, you must follow the footsteps of those who have proven themselves successful over time.

For some companies, such as pharmaceutical manufacturers, maintaining a robust new product pipeline is essential to long-term growth, relevance and basic stability because their drug patents will eventually expire and they will face daunting competition from producers of generic and imitator drugs. Other companies such as toy and clothing producers face highly vacillating and changing markets that demand a constant flow of new products. While all research and development into new products does not turn up major new product launches, in the long run new products often prove to be some of a company's most important assets.

LICENSING

Licensing your most cherished invention, ideas, concepts and intellectual properties to avoid undue duplication. "License your most advanced technology," advised Tom Peters. The idea behind this is that no technologies can be truly proprietary today. A rival or an outsider will soon copy whatever a company has developed. Save competitors the hassle of and profit from copying by selling current technology. This creates cash flow for the company to fund future research and development and creates switching costs by making others dependent upon a firm's applications.

SELL OFF OLD WINNERS.

There is no gain in getting married to old inventions and or concepts where as there are more useful ones that can guarantee you instant profit. No matter the good result you may be getting from it, until you get rid of the old, you can never experience the benefits of the new, better, and best. In my few years of doing business and teaching business management, I have seen business owners who are so in love with old technologies, that they vehemently resist any advice to get a new technology. Even if the new technology offers better ways of doing business, they are contented to live the obsolete even when the best is available and affordable. How can one succeed in business with that kind of mentality? Friend there is no dignity in clinging to the old when the new is available, affordable and preferable.

Getting rid of the cash cow operations to focus on growing newer enterprises can make sense for organizations trying to grow. Even though it sounds contradictory at first, top dollar is commanded in the market for this kind of business and the necessary capital to fuel growth of other operations is generated. The decline of a sold cash cow is left up to the new owner. Meanwhile, ventures that were new at the time of that sale may now be cash cows ripe for picking. An addition to this line of thinking is the divesting of older technology or products. Emerging markets such as Latin America and Eastern Europe have been favorite places for companies to get rid of outdated products or technology. These markets may not yet be able to afford state-of-the-art goods, but can still benefit from older models

PARTNERSHIP/MERGER

Joint Venture/Alliance is a formidable strategy for achieving organizational growth. This strategy is particularly effective for smaller firms with limited resources; however, in a business environment where changing demand, supply, and manufacturing or service conditions are an everyday occurrence," partnering" makes sense for the large organization as well. Forming joint ventures or alliances gives all companies involved the flexibility to move on to different projects upon completion of the first, or restructure agreements to continue working together. Subcontracting, for example, allows firms to concentrate on those portions of their businesses which they do best.

Partnership /Merger helps in the following ways\

1. Inject partners with new ideas  
2. Create access to new technologies
3. Empower the mergers with human capital of great resource
4. Introduce new approaches
5. Establish larger markets
6. Ensure stability and Vigor

All of the above have positive implications for the growth of all firms involved. Creating ventures with upstart or overseas firms may present the best opportunities for accomplishing this.

ACQUISITION

If you want to grow your organization try to buy other smaller or bigger companies that will greatly enhance your market share capitalization. Both small and large firms get bigger by buying other companies. Merger-mania cyclically sweeps the business world as a preferred method to increase a company's size, revenues, product or service offering, etc. Successful mergers and acquisitions will blend resources to create a synergy while improving existing core competencies.

A VENTURE CAPITAL/IPO.

Venture capital firm will provide cash to firms it expects will have extremely fast growth. The venture capital firms will expect to be rewarded for its capital infusion with large payoffs at an initial public offering (IPO), the point at which the small private firm issues public stock. For companies small or large, growth must be funded, but where can one get the money? Where large public firms issue stock or debt, smaller private firms search for capital from banks, private investors, or venture capital firms.

For any company that has achieved growth, the work has just begun. Managing and sustaining growth is imperative if the initial progress is to have any lasting positive effects for the company.

Knowing how to achieve organization growth is a key factor in establishing organizational relevance and profitability.

 

Do you need financing for your small business but do not know to get it?CHECH THIS HOT DEALS! 

 

If this article has been of benefit to you do not hesitate to post a comment to share your views with me and other visitors.There is a lot of helpful article in this blog to make sure your you have a wonderful experience.

 

See you at the top!