Business Strategy Qcf

3207 Words13 Pages
1. Analyze possible alternative of growth strategies for your chosen business – substantive growth, limited growth or retrenchment. Identify pros & cons of each strategy. (Outcome 3.1) A business growth strategy is a way that the company plans to do that clearly describes the business will pursue and do necessary steps to achieve the company’s goals and objectives. In this case there is 3 possible alternative of growth strategies that can be used by a company to achieve it’s goals and objectives: * Substantive growth strategies: According to, Substantive growth strategy means the strategy that companies do to manage the effective attainable growth that a company could maintain without running into problems. With the right growth rate company will assure the continuity of the business. A substantive growth strategy is the maximum growth rate that a company can sustain without having to increase financial leverage. The advantages of substantive growth strategy are: * Exponential Growth Exponential growth means the increasing number of profit that the company gets from the future selling of the business. By using the achieved profit, the company can use it for funding the other projects of the company that can make greater wealth gain for the company’s future and gain more market share from competitors. * Wealth Creation The advantage of the result of using substantive growth is the benefits that the company can bring for the society. The successful growth of the company will not only bring more profits for the owner of the company, it also increases the wealth of society around the company life. * Priorities The priorities of a business is crucial activity which involves level of priority regarding that business strategy. With the substantive growth, the
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