CREATING NEW GROWTH PLATFORM

S U B M I T T E D B Y: -

PA N K A J R U P L A N I - 2 0 1 3 1 8 9

A B H I S H E K PA N WA L A -2 0 1 3 1 9 0

PA R E E N A N E E M A - 2 0 1 3 1 9 1

PA R T H - 2 0 1 3 1 9 3

TYPES OF GROWTH PLATFORMS Strategic Growth Platform

Tactical Growth Platform

GROWTH STRATEGIES Horizontal Integration

◦ Occurs at the same level of business◦ It is of two types: Internal expansion and External expansion◦ Occurs through Mergers & Acquisitions

Vertical Integration

- The firm grows in Upstream or Downstream activities.

- Expansion of activities downstream is known as forward integration, and expansion of activities upstream is known as backward integration.

A NEW PRODUCT OR SERVICE Vs A NEW PLATFORM

COMMON COMPANY

Developing a particular product or service to beat the competition

Acquiring a company to provide a product or service complementary to the existing lines

HIGH-GROWTH COMPANY

Creating a whole new family of products or services that meet customer need that the company has never before addressed

New Platforms can start as Product or Service Idea

Originally: branded consumer goods manufacturer

Change agent: CEO A.G. Lafley.

NGP Unit: FutureWorks ◦ stand-alone BU to build growth platforms and search for opportunities

between and beyond of existing BU.

Challenge of Platform 1. Put credible chief growth officers in charge.

2. Believe that the team is more important than the idea.

3. Have NGP units that are independent and embedded.

4. Guarantee financial independence.

5. Systematize the NGP creation process.

NGP FAILURE Business-Unit Success

Delegation Of The Work

Failure To Sustain Commitment

Overconfidence

THE PSYCHOLOGY OF CORPORATE DECLINE

Some people began to do minimum, showing up at work just to earn their end-of-year bonus.

As problems mounted, people tended to either blame or avoid one another.

People’s time and energy were spent on self protection instead of joint problem solving.

It became rare for all the senior executives to sit down in one room together.

Finally, people become passive and helplessness.

Sign to turnaround

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