How to tame growth in the international markets and is going global a necessity.

2.  Different kinds of growth strategies require
different kinds of leaders.
 Growth via turnaround is different from organic
growth via homegrown products.
 Growth via new product development needs to
harness innovation leadership.
 Growth via brand equity, and brand extensions
needs a strong marketing brand management
leadership

4.  A series of small improvements to an existing
product or product line that usually helps
maintain or improve its competitive position
over time. Incremental innovation is regularly
used within the high technology business by
companies that need to continue to improve
their products to include new features
increasingly desired by consumers.

11.  Organic growth is the process of business
expansion by increased output, customer base
expansion, or new product development, as
opposed to mergers and acquisitions, which is
inorganic growth.

13. 1. Open another location.
2. Offer your business as a franchise or business
opportunity.
3. License your product
4. Form an alliance
5. Diversify
6. Target other markets.
7. Win a government contract
8. Merge with or acquire another business
9. Expand globally
10. Expand to the Internet

14. Internal
or
Organic
Growth
Within existing
or proven
businesses or
industries (“Red
Oceans”)
Maintaining or expanding the profitability of these
entities so that it trains and motivates the
employees
Capturing larger share of markets through newer
product and service offerings
Establishing new
and untested
business
definitions and
industries (“Blue
Oceans”)
Establishing new business models/entities
Strategic innovation in establishing new markets
and offerings as the destination of particular
market or product

16.  What is our market niche?
 Who are our customers?
 What products/services should we offer them?
 Do we have the technology/skills/passion to offer
them?
 Are they profitable?

17.  How rapidly should we expand our business?
 How should we grow?
 Where do we want to grow?

18.  How do we expand?
 By new product/service offerings?
 By exploring new markets?
 By tapping new customers?
 By reaching out to new geographic regions?
 By buying our competitors?

19. 
What functional and human resources do we
need for these expansions?

20. 
How can we organize the new resources for
short-term and long-term profitability?

21.  How do we link the new businesses to the old
ones?
 How should we manage, reorganize, restructure
and refocus such that we ensure long-term
consistency and success?
 How do we ensure continued growth and
profitability?

22.  How can we obtain them?
 By acquisitions?
 By mergers?
 By Joint ventures?
 By strategic alliances?
 By cross-licensing?
 By freeing capital from divestitures?

24.  AES, a U. S. - based energy firm that operates
124 power generation plants in 29 countries
on five continents has yet to benefit from
globalization. AES’s share price has tumbled
since investors’ initial enthusiasm for
globalization, and some investment advisers
are calling for the firm to split into three or
more parts.

25.  In 1998, Jürgen Schrempp, CEO Daimler-
Benz, the architect of the deal that sought
merger with Chrysler in order to create a
world corporation, never attained the power
over suppliers and markets that this global
corporation was supposed to deliver. Yielding
to shareowner pressure, he resigned, freeing
up his successor to sell Chrysler to the
private-equity giant Cerberus in 2007.

26.  Are there potential benefits for your company?
 Where and when would the benefits of
globalization show up in your financial
statements?
 What is the expected economic value of each
benefit?
 How detailed and solid is our understanding of
each benefit?
 What is the hard evidence that other companies
in similar circumstances have been able to realize
these benefits?

27.  Do you have the necessary management skills?
 What skills do we need in order to realize the
economic benefits expected as above?
 The theoretical advantages of achieving
economies of scale at home are very difficult
to realize abroad on a global scale.
 Thus, do we have coordinated supply and
support across borders despite diverse
cultures and political constraints?
 Do we have a clear track- record of exhibiting
or realizing such coordinating skills in the
past?
 Do we know how further to develop them?

28.  Will the costs of globalizing outweigh the benefits?
 Companies frequently pay far too much to enter
foreign markets.
 What will it cost the company in terms of
management time and business process investment,
to realize the benefits of the globalization strategy?
 Even if we have the required skills stated above, are
there unanticipated collateral damages to our
business that may make our entire international
endeavor counterproductive?
 What do critics from our other business units have to
say about the cost of globalization and its potential
impact on their business unit performance?
 What would be the most productive alternative use of
all the resources that we plan to earmark to our
globalization strategy?

29.  First, define your value proposition.
 Your growth strategy should be determined by your
value proposition.
 For instance, is your value proposition low price
leadership?
 If you are a low price leader like Wal-Mart, Dell, or
Medco, then you must extend low cost value relative to
adjacent competitive markets.
 If your value proposition is innovation leadership e.g.,
P&G, GE, 3M), then the growth strategy must be
continuous innovation that builds your sustainable
competitive advantage.
 If your value proposition is relational and building
lasting relationships (e.g., IBM, Fidelity Investments, GE
Aircraft), then you must create value to your long-term
customers by offering integrated solutions.

30.  Will the proposed venture offer attractive market
potential in terms of revenues?
 Is this a proposal where the company has
sufficient skills, learning and expertise? Or,
 Is this proposal in a domain where the company
has sufficient advantage to cover the learning
costs?
 Will the proposal enable the company to pursue
vertical integration with its suppliers?
 Will the proposal enable the company to pursue
horizontal integration with its competitors?

31.  Will the proposal enable the company to
strengthen its major flagship brands?
 Will the proposal enable the company to
broaden its core product lines?
 Would the proposed venture support the core
business, and not undercut it?
 Will the company support the proposed
venture with an effective leadership team?
 Hence, will the proposed venture offer
attractive market potential in terms of net
earnings?