scholarly journals DEVELOPMENT OF PRACTICAL APPROACHES TO GROWTH STRATEGIES IN COMPANIES’ ACTIVITY IN THE STRATEGIC PERSPECTIVE

Author(s):  
Natal'ya Chekashkina

The willingness of market-leading companies to have sustainable growth over the past few decades has been significantly complicated by the increasing level of uncertainty of the overall impact of environmental factors in all spheres of economic activity. Macroeconomic instability, sharp fluctuations in the raw material markets, intense industries’ competition, political instability, the multidirectional dynamics of social processes, unpredictable natural and climatic cataclysms of global proportion - all these have significantly impact that complicate the possibilities of forming market development strategies, based on traditional planning approaches that take into account mainly retrospective dynamics. Moreover, the economic instability of the last decade, caused by environments, has shown to significant part of international companies the instability of the chosen strategies for the development of the firm. The dilemma of choosing the direction of strategy is relevant for most companies of Russian and foreign business – managers face the question of choosing the direction of the corporate strategy development of the company, taking into account all the components of the business portfolio. The author studies the evolutionary development of the theory of strategic growth, presents a variety of approaches to the classification of organizational growth strategies, identifies their similarities and contradictions, and give arguments for the traditional growth strategies classification. Strategies of intensive growth, vertical integration, and diversification are attractive for development, but at the same time require certain efforts and resources. In the course of the study, the author conducted research to identify and choose the most optimal growth strategy when the company reach a certain level of stability for dynamic development, identified the basic criteria for choosing the strategic vector of the company's development.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susan White ◽  
Protiti Dastidar

Theoretical Basis In a typical strategy course, growth strategies like mergers and acquisitions (corporate strategy) are introduced in the second half of the course. To analyze the case, students will use strategies such as Porter’s five forces and resource-based view and will discuss why firms pursue mergers as a growth strategy, along with sources of synergies and risks in mergers. Finance theory used includes analyzing a given discounted cash flow analysis and perform a comparable multiples analysis to find the value of a merger target. Research Methodology The industry and financial information in the case comes from publicly available sources, including company 10K reports, business press reports and publicly available industry reports. The information about Lockheed Martin’s strategy comes from interviews with Peter Clyne, former vice president for Lockheed Martin’s IS&GS division. He then held the same position for Leidos Holding Corp., after the IS&GS division was divested and incorporated into Leidos. Case overview/synopsis This case is an interdisciplinary case containing aspects of strategy and finance. Lockheed Martin made a strategic move in 2016, to divest its Information Systems & Global Strategies Division (IS&GS), which engaged in government consulting, primarily in the defense and aerospace industries. Lockheed wanted to reassess its decision to divest consulting, given the high growth rates expected in this business, particularly in cybersecurity consulting. On the other hand, if Lockheed decided to maintain its hardware focus, it wanted to expand its offerings. In addition to a strategy analysis, two possible target firms can be analyzed: Fortinet and Maxar. Complexity Academic Level This case raises a broad set of issues related to the evaluation of M&A transactions across two different industries and corporate strategy, as it relates to strategic fit of the potential targets and LM’s current capabilities. It is appropriate for the core course in strategy at the MBA or senior undergraduate level. It can also be assigned to specialized courses in Mergers and Acquisitions. It is not appropriate for a lower level strategy or finance course, as it requires students to have prior knowledge of basic finance valuation techniques.


Author(s):  
Paul Mugambi ◽  
Miguel Blanco ◽  
Daniel Ogachi ◽  
Marcos Ferasso ◽  
Lydia Bares

During the 2010–2020 period, the European Union (EU) launched a growth strategy based on three fundamental pillars: smart growth, sustainable growth, and inclusive growth. Aiming to finance the projects related to these growth pillars, the EU used mainly the Rural Development Funds, the Structural Funds, those derived from the R&D Framework Program, the Trans-European Networks, and the European Investment Bank. This research aimed to determine whether the Spanish regions maintain homogeneous efficiency levels by using these resources to improve the levels of environmental quality related to renewable energies. A methodology that is frequently used by researchers in efficiency analyses was chosen, the Data Envelopment Analysis (DEA). The main findings revealed that the efficiency in the use of renewable energies is very uneven among the Spanish regions and these differences are maintained throughout the period analyzed. These results highlighted the need of changes regarding the proposed criteria for allocating European resources to finance the projects presented by each Spanish region.


Author(s):  
Barbara Widera

The paper addresses the topic of nature-based solutions applied in the architectural and urban design. These ideas are analyzed in the context of the opportunities they create for the humanity in terms of the sustainable growth and environmental protection. Nature-based solutions are inherently taken from nature. The first part of the paper presents their tremendous potential to be energy and resource-efficient, and resilient to change. In the second part of the research particular concepts driven from nature (copied form nature or inspired by nature) proposed for the buildings and cities are described and evaluated. The author discusses their functional usefulness, spatial appropriateness, adaptation to local conditions, end-user comfort, environmental benefits and the possibility of duplication. Nature-based solutions applied in urban planning can make cities more climate resilient and contribute to ecosystems restoration. The paper describes how sustainable urbanization can stimulate economic growth, make cities more attractive and enhance well-being of the inhabitants. It is also explained how particular buildings can benefit from the concepts driven from nature e.g. by increasing their energy efficiency and performance in terms of raw material consumption. In purpose to properly response to the climate challenge, humanity has to establish a new kind of partnership with nature. Using nature-based solutions should be considered as an important part of this approach. The concepts presented in this paper show some of the most promising options, such as integration of living systems with built systems and innovative combinations of soft and hard engineering. In conclusion some of the most promising nature-based solutions for climate resilient buildings and cities are indicated


2016 ◽  
Vol 5 (2) ◽  
pp. 136-144
Author(s):  
Wilaiporn Lao-Hakosol ◽  
John Walsh

999 is a Thai company that sells, distributes and supports medical equipment and supplies. It has achieved steady growth in its 30 years of existence but now faces unprecedented problems due to environmental change through the implementation of the most recent stage of the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) and other challenges. As an emerging, ageing, affluenza-suffering country, Thailand offers a number of interesting opportunities for a company in this sector but those opportunities also appeal to current and potential competitors. Should 999 be thinking of defending its current position or seeking to expand to new markets within the region?


2019 ◽  
Vol IV (III) ◽  
pp. 71-79
Author(s):  
Adnan Ahmad ◽  
Muhammad Ilyas ◽  
Muhammad Nisar Khan

This study reviews the growth strategies and their effect on the efficiency and productivity of the microfinance sector of Pakistan. The sector needs to have adopted intensive growth strategy instead of extensive strategies of wide expansion in term of physical infrastructure and human resources, which had increased the financial sustainability risks for the credit constrain institutions. The sixdimension model of outreach used in this study also shows that the sector does not achieve the targets set forth for these micro finance institutes with respect to its active borrowers’ outreach. The sector has mainly focused the big cities and urban areas whereas the poverty levels are higher in rural areas. The government has also shown its interest by launching two different types of loan schemes. Among the three different types of institution, the microfinance banks dominate the sector.


Author(s):  
Anastasiya Olegovna Androsova ◽  
Anna Viktorovna Semenikhina

The subject of this research is the analysis of components constituting the efficiency of corporate strategy. The authors conduct detailed examination on the key elements of a competitive strategy proposing means for its assessment, and give recommendations in assessment of the efficiency of corporate development strategy, which plays the crucial role in realization and success of the activity of any company. The object of this research is the socioeconomic component of organization. An attempt was made to establish dependence between the key economic indicators of activity of the company and successful implementation of its strategy, which allowed formulating the main principles for its assessment. In the current context, the rapid changes in external environment force the companies to build more flexible development strategies and constantly adjust them in accordance with the dictated changes. At the same time, it is important to be able to assess the existing strategy through the prism of work performance indicators. The article substantiates the need for constant monitoring and assessment of the efficiency of existing corporate development strategy; establishes connection between the goals, resources, outlook, mission of the company with its strategy; as well as suggests the principles for assessing efficiency of corporate strategy that would facilitate timely determination of problematic areas from the strategic perspective and initiate measures for their elimination, which maintain the company’s competitiveness and help achieve long-terms success.


Author(s):  
Alina Steblyanskaya ◽  
Zhen Wang ◽  
Elena Ryabova ◽  
Svetlana Razmanova ◽  
Maxim Rybachuk

Over the past ten years have seen ambiguous situation concerning China and Russia gas companies. On the one hand, companies’ reports show conservative policies and sustainable growth in the coming years, on the other hand, companies’ financial performance suggest another situation because of insufficient level of financial indexes that reflects the inconsistency of existing sustainable growth approaches. These indicates relevance of the research concerning China and Russia gas market companies’ financial sustainable growth in conditions of global economy and investment policy implementation. The main purpose of the Research is to analyze China and Russia gas market companies’ financial growth strategy by means of Geniberg Z – matrix as well as enhanced Financial Sustainability Indicators System indexes by identifying which indicators have a greater influence on Sustainable Growth Rate. It is found that ROCE, ROFA, CR, DOL, ROL influence on Russian gas market companies’ SGR, and ROCE, WACC, ROL, CG Dummy influence on Chinese gas market companies sustainable growth.


Author(s):  
Riri Lestari

Abstract The purpose of this research is to create Economic Development Strategy in Halal Tourism Area in Sembalun of East Lombok Regency and formulate economic development strategy by doing analysis of AHP (Analythical Hierarchy Process). How to take informants in this study using Purposive Sampling. Based on the results of the analysis and discussion that has been done before, the strategy of Economic Development of Halal Tourism Area In Sembalun, East Lombok Regency is still in the low category seen from the income of society and life is still very simple. To overcome these problems then need some strategies that are growth strategy, development strategy and equity, and strategy with insight of space. The criteria for economic development are 1) capital assistance for society (0.863) 2) IT based technology (0.819) 3) Increasing employment opportunities for the community (0.781) 4) Higher education 0.716 5) Reducing Unemployment (0.673).


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