A growth strategy means increasing the level of the organization’s operations. This includes such popular measures as more revenues, more employees, and more of the market share.
Growth can be achieved through direct expansion, a merger with similar firms, or diversification.
There are different ways to pursue growth. Some organizations try to grow internally through some form of concentration-that is, by using existing strengths in new and productive ways, but without taking the risks of great shifts.
A second set of growth strategies includes actions that can change the basic nature of an organization. They pursue growth through some form of diversification-the acquisition of new businesses in related or unrelated areas, or investment in new ventures. Along with the growth diversification makes possible, it can also bring the complications of operating in new and often unfamiliar business areas. The added risk may be justified for organizations that are limited by environments of strong competition, have restricted access to markets, or are experiencing uncertainties in supply and distribution channels.
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