Question

A small business owner makes a conscious decision to remain small; a high-impact entrepreneur’s goal is not to stay small (Allen, 2020). Focusing on the high-impact entrepreneur, discuss the three primary characteristics of a growth strategy, and for each cite an example of a company whose growth has that particular characteristic.in 300 words.

Answer 1

Solution -

The growth strategies across businesses are as follows -

• Diversification
• Market Development
• Product Development
• Market Penetration

For a high impact entrepreneur the three major characteristics of growth are as follows -

1. Risk is directly proportional to growth - High impact entrepreneurs have this tendency to undertake larger risks. Their appetite for risk is much higher and hence they are able to absorb uncertainty and maneuver better in unstructured environment. The risk undertaken by these high impact entrepreneurs is also dynamic in nature and they are more prone to take the less treaded paths. All their growth strategies are based on high risk and high return formula and assumption. Uber is one such example which was a high risk aggregation model and with many unknown parameters it was dynamic risk that the Uber founders managed.
2. Valuation is Key - High impact entrepreneurs look at valuation as a key metric for growth. They are not worried about regularity of income and neither are they worried about sustainability. Such entrepreneur is worried about valuation and hence looks at short-term operational activities and tries to salvage business opportunities through any market scenario. The high impact entrepreneur looks at the exit strategy impartially and valuation becomes the key metric to define growth. Amazon is one such example that droove it's valuation with its e-commerce business even when they were not making profits.
3. All growth has certain path breaking innovation and disruptions - The strategy of high impact entrepreneurs is mostly based on innovation and theybare responsible for transformation. The high impact entrepreneur believes in driving the change in the industry and is always looking for disruption strategy. Tesla is an example of one such company that was based on driving such disruptions in the industry and drive their growth.