This week, I will work on the note that giving by my IT Entrepreneurship lecturer, madam Rafidah. At this week, our group had finished done our business activity.
At the end of this week, I had learned the preparing for and evaluating the challenges of growth. The objectives that I learned from this chapter are to explain the term sustained growth, describe the potential downsides to firm growth, and discuss the seven most common reasons firms pursue growth. Besides that, I also learned how to explain the advantages of having scalable business model, describe the basic idea behind benchmarking and how benchmarking can be used to help a firm executes a successful growth strategy.
There are two types of growth, which are nature of firm growth and double-edged sword. Nature of firm growth is the most entrepreneurial firms want to grow. From this firm, growth in sales revenue is exciting and is an important indicator of an entrepreneurial venture’s potential for future success. The second type of growth is double-edged sword. Growth is an indication of a firm’s success; it can threaten the stability of a firm’s operations in every area.
The reasons for firm growth are to capture economies of scale, capture economies of scope, execute a scalable business model, and be the market leadership. Economies of scale will occur when increasing production lowers the average cost of each unit produced. Market leadership will motivate a firm to grow because they will be recognized as the brand leader when they are successful. Besides that, there are also another three reasons for growths which are influence, power, and survivability, need to accommodate the growth of key customers, and the ability to attract and retain talented employees. I also learned the benchmarking that against successful growth firms. I knew that, by benchmarking, a firm can improve the quality of an activity by identifying and copying the methods of other firms that have been successful in that area.
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