SMALL BUSINESS
MANAGEMENT
Chapter 14
Managing Growth
The Business Cycle
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Introduction
_______
Maturity
Decline
Problems Created by Growth
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Owner-Manager Fatigue and Stress
Lack of Communication
Lack of Coordination
Shortage of _______
Low Profitability
Problems Created by Growth (cont.)
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Breakdowns in Production Efficiency
Lack of Information
Decreasing _______ Morale
Owner Lifestyle
Evaluating the Growth Question
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Is the business one that can grow ?
Is the business owner prepared to
make the effort ?
Does the owner-manager have the
_______ to grow?
How should the owner-manager
_______ growth ?
Evaluating the Growth Question (cont.)
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Growth options
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new _______ for the product or service
increased sales by increasing frequency
of use.
add new _______ or services or modify
existing ones.
new uses for _______ products or
services
acquire other _______ companies
Planning for Growth
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The Expansion Plan
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set _______
determine alternatives
select the best alternative
Planning for Growth (cont)
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Understanding the Requirements of
Growth
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Greater Management Depth
Intelligent _______
Additional capital
Financial Information
_______ Change
Implementing Managerial Controls
Monitoring the _______ Environment
Concept Checks
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1. What concepts can help the
owner-manager deal effectively with
growth problems?
2. What are the four stages of the
business cycle?
3. What are the problems created
by growth?
Concept Checks
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4. How can the owner-manager deal
effectively with growth?
5. Why don’t small business owners
use more formal planning?
6. What are the steps in the growth
plan?
7. What are the requirements of
growth?