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Organizational Growth

In this week’s readings, you learned about the advanced stages of organizational growth. For this exercise, create a table in Microsoft Word that:

Briefly describes stages V, VI, and VII of organizational growth.
For each stage, describe an example as it relates to any relevant company. You do not have to use the same company for each example.
Identify 1–2 key areas of success and 1–2 areas for improvement at each stage for the example you’ve provided.

  1. diversification
  2. integration
  3. decline and revitalization

Sample Solution

races is also a challenge for foreign investors (Global Indonesian Voices, 2013). Foreign investment and company establishment, 2015 defines that to establish a business in Indonesia is not an easy task. If the foreign company does not want to invest in the local entity and establish an independent identity, he first has to select a agent and distributor or open a representative office in the Indonesia. If the business shows the sign of growing, then foreign investor will apply for a company status. The foreign investor will establish the office according to the line of business and the government will open essential licences, the main disadvantage of opening representative office is that they cannot conduct direct sales and issue bill of lading. Entry Strategies: The foreign countries can take advantage of various business opportunities by adopting various entry mode strategies. Different writers describe different entry mode strategies. According to Cullen and Parboteeah 2011, entry mode strategies are Exporting, Strategic Alliance and Foreign Direct Investments. (Phatak, Bhagat & Kashlak 2009) defines exporting, licencing, countertrade, contract manufacturing, non-equity strategic alliance, equity based joint venture, wholly owned subsidiaries. While (Meyer, Estrin, Bhaumik & Pen 2009) has described Greenfield, Acquisition, Joint Venture as three entry strategies in the emerging markets. Here I am going to describe three viable strategies: Three Entry Strategies: Equity Based Venture: In this strategy, a company can enter into foreign market by holding equity ownership and control of company through foreign direct investment. These type of ventures are useful in that countries where the risk is low, markets are stable. These can be done for various purposes like to obtain raw materials, to make products for export to home country. Equity based ventures are further divided into wholly owned and joint venture (Phatak, Bhagat & Kashlak 2009). Wholly Owned Subsidiaries: Subsidiaries in which foreign countries has full control and ownership in the host countries are called wholly owned subsidiaries. These are of two types: Greenfield: Greenfield means set up a new entity in foreign company from scratch by using locally available sources. Acquistions: It means to capture the existing business running in the forei

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