A growth opportunity exists for your company if it passes four tests:
a. It relieves human pain- there is a chance to put a smile on the faces of unhappy people.
b. There is a big market- many such people in pain will pay for a product to make them happy.
c. You have the right skills- your company can design, build, distribute, and service the product.
d. You have an advantage- you are ahead of current and potential rivals in the race to make those people happy.
2. What is to be considered a company to be growing?
There is no way to define how much a firm needs to grow to be considered growing. OECD (Organisation for Economic Co-operation and Development) defines that a company can be considered if it grows more than 20% in employment or turnover over a three-year period. The cross-sectional intent of this research is that any growth in employment or revenue growth within the last year is considered a growing firm. The employment increase is used as the primary measurement of growth and revenue increase as the secondary indicator because it better suits the purpose of this study.
3. What is a SWOT Analysis?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a technique for assessing these four aspects of your business. You can use SWOT Analysis to make the most of what you've got, to your organization's best advantage.
4. How to analyse the industry so that company can enter into the business?
Porter's Five Forces is a model that identifies and analyses five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently used to identify an industry's structure to determine business strategy. They are:
a. Competition in the industry
b. Potential of new entrants into the industry
c. Power of suppliers
d. Power of customers
e. Threat of substitute products
5. How can a company analyse the external factors that affect its operations?
PESTLE Analysis (political, economic, social, technological, legal and environmental) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.