View source

Financial analyses is defined as the act of evaluating the financial performance of a company over time and relative to its peers  growth strategies.  Financial ratio analysis is used to assess where a business’s operating issues might originate from.  Financial analysis can be an internal exercise, or as a competitive exercise.  Especially, the goal purpose of growth strategy is to understand whether and how firms create value for its shareholders.  Financial ratios are especially necessary in competitive comparisons.

Business strategy includes the areas of corporate strategy, marketing strategy, sales strategy, among other areas growth strategy.  Business strategy is many times conducted during a bi-annual strategic planning session, typically held in a week long day remote location with management and key personnel, both within and external to the business.  When we speak about growth strategy, we should include    natural growth and inorganic growth, namely M&A.  Sales strategy includes distribution strategy, indirect sales strategy, and business development.  Marketing strategy and sales strategy are often discussed in unity, but are completely different in actuality.  Marketing strategy includes advertising strategy, product launch strategy, in addition to  growth strategies.

Each consolidation stage is characterized by a unique organizational structure and hang of management objectives  value innovation. Significant decisions are delegated to line managers that have teams of their to complete on tasks.  Each stage needs a different list of management style.  By the last stage, the management team is well staffed and experienced.  The management team is in charge of driving innovation and risk management to influence the corporation from ossification.  Be aware that the CEO that can lead an organization through Scale will not be the correct person to steer the organization during Balance phase.  It is normally not similar team as in the first 2 levels. The corporation engages in detailed growth strategy and strategic planning.  Well known ones include Pinto’s Pyramid Principle, which is widely practiced by management consultants and business executives in structuring business presentations.

Penetrating the market works best as the product reaches the mainstream market and competition is vying for share  value innovation.  ”Me too” companies are quickly entering into the market, driving up supply, thus also driving down pricing of the product.  As we enter the mainstream market, as survival is correlated with share.  When the competitive environment is like this, this is a race to achieve at least 10% share.  Penetration pricing strategy works well for a late entrant who wants to capture share quickly.  Behemoth organizations may adopt predatory pricing to put up barriers to entry and force out or deter small players.   Pricing penetration is usually practiced when adoption it at its highest rate.