Examples of Organic growth in the following topics:
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- Organic growth is the process of businesses expansion due to increasing the customer base, output per customer, and/or through new sales.
- Organic growth is the process of business expansion due to increasing overall customer base, increased output per customer or representative, new sales, or any combination of the above, as opposed to mergers and acquisitions, which are examples of inorganic growth.
- Organic growth figures are adjusted for the effects of acquisitions and disposals of businesses.
- Organic growth does include growth over a period that results from investment in business the company owned at the beginning of the period.
- Discuss how organic growth is achieved, and the advantages and limitations of organic growth
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- We start by defining what we mean by growth and growth-oriented firms.
- Criteria such as growth in the number of employees, or sales growth are generally used by researchers.
- The Kaufmann Center for Entrepreneurial Leadership, a leading institute of entrepreneurial research in the USA, for example, defines high-growth firms as being those with over 30 per cent growth in sales or over 20 per cent growth in the number of employees for each of the three preceding years.
- Other US researchers (Siegel/MacMillan 1993) define strong growth as over 25 per cent growth per annum over a three-year period.
- The number of high-growth firms is no doubt limited.
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- In this chapter we investigate possible strategies for the growth of start-up firms.
- First, we describe growth as a phenomenon and basic problem for such firms.
- We then examine different growth strategies which firms can pursue.
- In the second part of the chapter we present the most well-known mistakes made by start-ups during the growth phase, and suggest ways to correct or—even better—avoid them.
- To conclude, we provide recommendations for how entrepreneurs can profit best from growth.
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- Vam Organic Chemicals Ltd. in Gajraula, India, for example, uses spent water for dust control and incorporates the effluent into its distilling operation.
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- In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment," which is caused by growth in aggregate demand or observed output.
- Inflation and Deflation can make it difficult to measure economic growth
- Inflation or deflation can make it difficult to measure economic growth.
- To express real growth rather than changes in prices for the same goods, statistics on economic growth are often adjusted for inflation or deflation.
- Break down the measure of economic growth and the contributing factors behind it
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- The first group of flawed growth strategies is marketing strategies.
- Marketing plans and their extrapolation are a prerequisite for avoiding growth mistakes.
- This only ensures the growth of the senior partner.
- Such a flawed marketing strategy is also a huge hindrance to growth.
- A third group of flawed growth strategies concerns the financing of growth.
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- A sixth mistake is to force growth.
- If growth occurs too rapidly, the firm is in danger of losing sight of the risks involved in the individual activities of the value chain, even when this growth can be financed.
- Here, continuous development is better than erratic growth (cf.
- It is a significant growth mistake to do without planning and strategic development.
- This oversight is a serious impediment to growth.
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- These models are also used in research into growth problems.
- Kazanjian and Drazin (1980), for example, developed a four-phase growth model, and identified the typical growth problems of fast-growing firms in each phase.
- Phase 3, Growth: The fast-growth phase is characterized by its focus on the market.
- Moreover, well-known growth models with a bell-shaped, concave, or plateau structure are only useful as ideal reference patterns for actual growth processes.
- In the following sections of this chapter we will define possible strategies for start-up growth.
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- There are two components in income growth due to performance: the income growth caused by an increase in production volume and the income growth caused by an increase in productivity.
- The income growth corresponding to a shift of the production function is generated by the increase in productivity.
- The other 17.00 units came from the production volume growth.
- In the above example, the combination of volume growth (+17.00) and productivity growth (+41.12) reports explicitly that the production is classified as "increasing returns" on the production function.
- Productivity growth is a crucial source of growth in living standards.
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- Franchising grew greatly in 2001 to 2005, before stagnating and following the growth trend of the rest of the economy in the years that followed.
- In its Franchise Business Economic Outlook for 2012, the IFA stated, "after three years of restrained growth, due to the recession and its lingering effects, franchise businesses show signs of recovery in the year ahead. " The IFA went on to state that "franchise business growth has been restrained over the past three years due to underlying factors, such as the weak rebound in consumer spending, that have been a drag on the economy as a whole.
- Every six months the IFA puts out a statement about how the tight lending standards are retarding the growth of franchising.
- If it is not, then it is incumbent upon the leadership to set forth with more particularity the goals because liquidity in the system is inextricably linked to the franchise growth projections.
- And if that is the case, then the growth rate that was experienced in the years leading up to the Great Recession cannot be the benchmark for growth in the next decade.