Growth Strategy of

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 Growth Strategy

i Growth strategy involve a significant increase

in performance objective beyond past level
performance .
i Growth is something for which most
companies strive, regardless of their size.

i Company can Growth internally or externally.

weed for growth strategies in a business
organization

¢ To obtain economies of scale

¢ To attract key employees
¢ To increase profit.
¢ To become market leader
¢ To ensure survival.
Yeasure of growth of growth

there are many parameters a company may

use to measure its growth.
Since the ultimate goal of most companies is
profitability, most companies will measure
their growth in terms of net profit, revenue,
and other financial data.like: sales, number of
employees, physical expansion, success of a
product line, or increased market share
Growth strategy can be divided in to three

¢ Intensive strategy
¢ Integration strategy
¢ Diversification strategy
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¢ It means combining activities related to

the present activities of a firm.such
combination can be done on the basis of
the industry value chain
¢ Integration can be
1) back ward Vertical integration
2) forward Vertical integration
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i Œhen one firm engaged in different part of

production activities (e.g producing row
material,manufacturing,transporting,distributio
n and retailing ) such activity is said to be either
back ward or for ward integration

i It can be done based on industry value chain

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¢ |ne of the earliest, largest and most famous

examples of vertical integration was the
Carnegie Steel company. The company
controlled not only the mills where the steel
was manufactured but also the mines where
the iron ore was extracted, the coal mines
that supplied the coal, the ships that
transported the iron ore and the railroad that
transported the coal to the factory, the coke
ovens where the coal was cooked, etc.
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¢ The Indian petrochemical giant Reliance

Industries is a great example of vertical
integration in modern business. Reliance's
backward integration from textiles into polyester
fibers and further into petrochemicals was
started by Yukesh Ambani . Reliance has
entered the oil and natural gas sector, along with
retail sector. Reliance now has a complete
vertical product portfolio from oil and gas
production, refining, petrochemicals, synthetic
garments and retail outlets.
  

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