While it seems the market is on its way up, with clearance rates consistently well above those of 2012, there will be downtimes and businesses should always be prepared. After all, people like to work with brands and people they trust. hockingstuart Chelsea director Daniel Wright grew his business by 19% in 2012 while taking out the coveted hockingstuart Franchisor of the Year award in the same year. FrontPage Magazine. However, to be successful and sustainable, growth has to be strategic and has to happen for the right reasons. Growth investing is an investment approach that targets stocks that provide a significantly higher average rate of return than the market in general. The importance of strategy is in the fact that it helps you to adapt, whatever changes might be happening in the business environment. But it is much more […] Growth can be good for business for many different reasons. Guest Contributors July 18, 2013. Save; Share; … It's a necessary condition. 6) … Invest in building your reputation, because in real estate it’s everything. Strategy Formulation Process your motives for international growth must be clarified. Growth strategy Digital Article. Also Read Interview Clothes: Tips on Wearing the Right Interview Clothes. The basic objective in all these cases is growth but the basic problem in each case is significantly different which needs more elaborate discussion. Strategy is important to make decisions, conduct operations, attract customers, compete successfully and attain organization's goals. The undeniable advantage of online shopping is always be time saving. The following motives could be provided: Necessity to spread fixed costs over a larger sales volume: • excess capacity present factory • future manufacturing process requires larger economy of … A growth strategy gives your company purpose, and it answers questions about your long-term plans. Daniel Wright is the director of hockingstuart Chelsea and a 15 year specialist in Melbourne’s bayside real estate market. Nearly half of Americans agree that growth in technology has been the biggest improvement to life in the past 50 years, and, as a result, companies that embrace innovation have a had sizable advantage in ultimately meeting the demands of their customers. [online] Available at: http://www.forbes.com/sites/moneybuilder/2012/06/15/four-risks-of-investing/ [Accessed: 9 Apr 2014]. Organic growth is a growth strategy where a company works to increase their number of customers, revenue, and overall business development. The question is are you considering them all? Instead, a growth strategy addresses how your company is going to evolve to meet the challenges of today and in the future. The key to finding the right growth strategy is properly matching it to your company and its specific marketplace. Millions face 'eat or heat' dilemma as energy bills soar. The matrix considers two dimensions, products and markets, and considers whether they are new or existing. Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as implementing a strategy in a … Importance of Strategic Management. The importance of strategy in business growth. The company maintained a growth rate of about 10 percent year to date. We hired staff to take care of the administration side of the business which freed up our core team to focus on sales. We knew that if we were going to make an impact we’d have to up the ante by getting involved in the community and making our presence felt. It appeared from our sample that a growth company can maintain and leverage its strategic flexibility for only so long as it increases its size and extends its scope. Yahoo! Financial strategies should be discussed and shared with company shareholders, executives and employees, so everyone is on the same page financially. It often spurs innovation, helping you to differentiate in the market and stave off competition. Many businesses view growth differently and it is important that you define the type of growth … [ONLINE] Available at: http://www.parkerassociates.com/svc_detail_pages/mfs.htm. In fact, it is the job of strategy to anticipate these changes as much as possible and be ready with action plans for the same. Why Strategy is Important In Business. "Obama Is at Two Dozen Scandals and Counting.". An effective business strategy will allow your organisation to predict and meet the changing demands of the current market. Most senior managers pay close attention to the strategic side of growth—the “wheres,” “whens,” and “hows.” Yet many underestimate the importance of organizational factors in translating a growth strategy into reality. 9) The overall growth of the firm. Business Growth is about more than just getting bigger. All rights reserved. Importance of Strategic Planning: The importance of a growth strategy. What are the Benefits? This works best in a scenario where there are no new products, and there are no new markets to enter. Synergies are of the utmost importance when utilizing M&A, specifically acquisitions, to generate growth. Why is growth in business important? International Social Security Review, 45(1-2), pp. A strategy helps an organization to understand their immediate environment and what they need to succeed. Planning pays; Tracking your progress according to a set of criteria can help make sure that you are on track and growing. Concentrate on selling something unique that you know there is a need for, offer competitive pricing and good customer service.” A good strategy helps yo create a foundation for ensuring growth and success. A growth strategy is one under which management plans to advance further and achieve growth of the enterprise, in fields of manufacturing, marketing, financial resources etc.