How does these two scenarios vary? We will generally have organic and inorganic ways of growing or use Ansoff's growth matrix. Is there a clear distinction and should there be different approach for them?
How does these two scenarios vary? We will generally have organic and inorganic ways of growing or use Ansoff's growth matrix. Is there a clear distinction and should there be different approach for them?
Hi!
In general, there are no strict guidelines and the interviewer may have both in mind. It's much more important when the question is being asked:
In the beginning of the case I would use the following broad structure:
Analyze the market:
Analyze the competitors:
Analyze our company:
How to increase revenues:
However, if it is the questions on creativity in the middle of the case as the question on creativity I would use the following framework:
Organic growth
Non-organic growth
Best!
Hey!!
Based on my understanding, and I may be wrong here so please correct me, I beleive when talking about Revenue Growth, we talk in terms of growing either the market share or reducing the price. I can see where the confusion lies, since both market growth and price reduction can also be part of Inorganic Growth. However, I see Revenue Growth as a sub-set of the master set which is Growth per se. Since Organic and Inorganic Growth both have an impact on the Revenue stream. Hence, when faced with this dilemma, I prefer to clarify the Financial Metric with the Interviewer by directly asking him/her the exact financial metric that the case wants to assess.
Hope this helps!!
Hello
When asked for a growth strategy they are referring to growing revenues (this will grow market share). In this case I would suggest inorganic or organic ways to grow revenues...(remember revenues has two levers PRICE x VOLUME).
You may in some cases be asked to grow profits. Therefore your can increase revenues, cut costs or both.
I think organic and non-organic headings got swapped :)