What is sustained growth and why do you feel it is important to an enterprise?
According to Barringer & Ireland (2015) sustained growth can be characterized as revenue and profit accretion over a long period of time. A long term orientation through the pursuit of slow and steady growth is essential for organizations to remain competitive – growth is best derived from core competencies aligned to a portfolio of offerings (Leinwand, Mainardi & Adolph, 2016). Without sustained growth an organization risks: (1) losing control and creating a chaotic environment that may dissatisfy customers and employees (Barringer & Ireland, 2015, p. 444); (2) insufficient access to capital which may prevent a business from hiring and/or purchasing equipment (Barringer & Ireland, 2015, p. 459); (3) inability to attract talent and high turnover for quality employees (Barringer & Ireland, 2015, p. 450). Without a deliberate and planned approach to growth, organizations risk running into problems that can hamper their longevity.
Reference:
Barringer, B. R., & Ireland, R. D. (2015). Entrepreneurship: Successfully launching new ventures (5th ed.). Don Mills, Canada: Pearson Education Inc.
Leinwand, P., Mainardi, C., & Adolph, G. (2016, June 17). Growth Needs to Come From the Entire Company. Retrieved from https://hbr.org/2016/06/growth-needs-to-come-from-the-entire-company
DQ 2
Sustained growth is the continuous expansion of a company’s brand and development of their personnel. Today, business is conducted so quickly that If the company is not growing, it is dying. Sustained growth describes the steady process towards higher profits and better products. Steady, company growth is experienced through the investment in human capital and technology (Neck et al., 2018). Business leaders would describe sustained growth as knowing your product and understanding how it fills a certain gap, hiring the best people, and using debt wisely (Heffes, & Sinnett, 2006). A company’s employees or ‘human capital’ drive growth and will dictate the overall success of the firm. Although every business is different, the people who make up the organization will ultimately determine its potential for growth. You can have a great product or idea, but you need the right people, that know about the product and how to sell it (The Art of Sustained Growth for your Business, 2008). This is extremely important to every enterprise because they must focus on sustained growth if they desire to remain relevant in their industry. Without sustained growth, companies suffer and become extinct.
Sample Solution