Business Strategy 2
Examine approaches to strategr5y evaluation and selection
Analyse possible alternative strategies relating to substantive growth, limited growth, and Market entry strategies, and disinvestment strategies
IKEA has marketed its products well and has dealt with all the problems easily. But there have been some constraints that came in the way of IKEA and alternative strategies have to be developed for them. These strategies are as follows:
Substantive growth: In any business strategy growth is the most important factor. To achieve substantive growth the firm needs to go through a lot of planning. Some of the key advantages of substantive growth are:
• Exponential Growth: Once IKEA achieves substantive growth in their business then they can be confident that it will lead to more growth in the future. There is a tendency of the growth of wealth at an exponential rate and the company can use these funds for other project to generate gains in future. While an organization achieves substantial growth the main benefit is that it helps in investing them for future benefits and achieving potential wealth gains. This is always a welcome consideration.
• Competition: Substantive growth of IKEA will help them to understand the strength of the competition and developing the business strategy accordingly. The faster a company achieves substantive growth the easier it is for them to beat the competition. The added wealth that IKEA gains from substantive growth can be utilized to gain the market share from different competitors. The best thing about substantive growth is that it acts as a motivator. Once a business starts gaining substantive growth it can be more than sure that it has gained advantage over the competition.
• Priorities: It is very important to decide the priorities in any business. Making clear strategies and deciding which goals need higher levels of importance will help the business in understanding the key priorities. Substantive growth acts as the
Analyse possible alternative strategies relating to substantive growth, limited growth, and Market entry strategies, and disinvestment strategies
IKEA has marketed its products well and has dealt with all the problems easily. But there have been some constraints that came in the way of IKEA and alternative strategies have to be developed for them. These strategies are as follows:
Substantive growth: In any business strategy growth is the most important factor. To achieve substantive growth the firm needs to go through a lot of planning. Some of the key advantages of substantive growth are:
• Exponential Growth: Once IKEA achieves substantive growth in their business then they can be confident that it will lead to more growth in the future. There is a tendency of the growth of wealth at an exponential rate and the company can use these funds for other project to generate gains in future. While an organization achieves substantial growth the main benefit is that it helps in investing them for future benefits and achieving potential wealth gains. This is always a welcome consideration.
• Competition: Substantive growth of IKEA will help them to understand the strength of the competition and developing the business strategy accordingly. The faster a company achieves substantive growth the easier it is for them to beat the competition. The added wealth that IKEA gains from substantive growth can be utilized to gain the market share from different competitors. The best thing about substantive growth is that it acts as a motivator. Once a business starts gaining substantive growth it can be more than sure that it has gained advantage over the competition.
• Priorities: It is very important to decide the priorities in any business. Making clear strategies and deciding which goals need higher levels of importance will help the business in understanding the key priorities. Substantive growth acts as the