David Braun
Author's posts
Growth Pathway # 5: Pursue External Growth
The fifth and final pathway to growth is external growth. Here, expansion is achieved by engaging with entities outside your company. There are many forms of engagement, of which acquisition is but one. External growth can be one of the most exciting paths to growth and in many cases, it should top your list of …
The Power of Minority Interest: Microsoft’s Interest in Dell
Although I deal primarily with mergers and acquisitions, acquisition is simply one pathway to external growth and should be considered in a broader context. One of the pathways to external growth to consider is minority interest ownership. Microsoft’s proposed buyout of Dell demonstrates many of the benefits of minority interest ownership, a surprisingly neglected tactic. …
Prepare to Buy: Planning A New Acquisition
The decision to make an acquisition is no small step. While there is risk inherent in any acquisition, the downsides can pale next to the potentially enormous rewards. In my post on the Association for Corporate Growth blog, I outline how to plan a new acquisition so you can minimize the risk and reap the …
Growth Pathway # 4: Do Nothing
Of course, doing nothing is rarely if ever a pathway to growth. However, it is a choice that companies actually make every day. ‘‘Choice’’ may be an overstatement. Few executives or board members sit down, open their flipcharts, and plan a careful do-nothing strategy. They drift into it by default. When things seem to be …
Growth Pathway # 3: Be the Low Cost Provider
Sometimes organic growth can be achieved by dramatically cutting costs. I call this the “jellyfish strategy” : you go up when the tide is up and out when the tide goes out. There may not be many natural predators, so you will survive, but this approach is unlikely to drive long-term expansion. Note, that being …
Growth Pathway # 2: Exit the Market
If your company’s organic growth has hit a plateau or is in decline, leaving the current market is an option that should be seriously considered before you embark on any other growth solutions. As I previously mentioned, growth does not necessarily mean getting bigger. Sometimes the best pathway to growth is to get out of …
Growth Pathway # 1: Grow Organically
In my previous post, I mentioned the five pathways to growth. The first pathway is organic growth. Organic growth is business as usual. It is growth through acquiring more customers or selling more products. You may be reading this blog because on some level your organic growth has stalled. But before you rush to adopt …
Five Pathways to Growth
As you focus your attention on the growth of your company, there are five key pathways to consider: Grow Organically Exit the Market Be the Low-Cost Provider Do Nothing Pursue External Growth Before you even start planning an acquisition, remember there are other growth options available. It is an important realization that you do have …
Future Demand
Future demand is king for reasons that are self-evident, once you pause to think about it. Ultimately, your growth depends on your success in meeting the needs of customers you have yet to capture. What do they want today? What will they want in the future? Business winners are the ones who best answer these …
Looking to the Future
As we begin the new year, I am reminded of the importance of looking to the future for growth. One of the tools I use at Capstone when we begin work with clients is Michael Porter’s ‘‘Five Forces’’ model for analyzing a company’s relative position in the market. It invites you to look at the pressures …
