Company's Growth through the Application of Burns Greiner and Klofsten Business Models - Example

GROWTH PLAN Name: Course Instructor’s name Institution Date Contents 1.0 Introduction Over the years, business growth has been a difficult task, especially for small or new businesses. This analogy is proven recent research which suggests that only one-tenth of 1 percent of companies hit the $250 million in annual revenue mark. Narrowing down this relevation one can note that mere 0.036 percent, hit the $1 billion mark in annual sales (Dandekar and Doherty, 2014). Going by these statistics one can, therefore, claim that it is a common trend in business where businesses often start small but end up staying in that position for rest of the time they are in operation. This paper, therefore, bring out a strategic plan that can be taken by accompanying which will foster its growth through application of Burn’s Greiner and Klofsten’s business models. 6 1.1 Klofsten’s model 6 1.1.1 Cornerstone 1: Idea 6 1.1.2 Cornerstone 2: Product 7 My product is Alqahawa coffee which is an Arabic cuisine stimulant drink which can be served in various ways. This means that the customers have the preference to order various types of coffee. This product is a plus since it is a unique product with its competition being only the locally prepared coffee which lags behind in terms of quality compared to Alqahawa. Choosing this product will ensure I create ease in availability of Arabic coffee for the target market giving the product a competitive edge compared to other Arabic coffee brands which are not readily available within the school premises. On the other hand, I will focus on the product’s quality since it will foster the products growing reputation. I will also focus on the concentrations of milk cream, coffee, water and other additives which will enable us to strike a great balance between the concentrations of ingredients used in the preparation of the product, therefore boosting the products quality. 7 1.1.3 Cornerstone 3: Market 8 Putting up a stall within the school premises means that the market for my product is the school students, staffs and visitors. Therefore, I need to exploit this market by studying different scheduled of my target market, for instance, I should note that the students often do not have breakfast in their hostels or home most of them take their breakfast in the school cafeteria. Therefore, I should ensure that the Alqahawa coffee is ready by this time for me sell to these students. I should also note that the teaching staffs like to carry their coffee with them to class in order to save time. This, therefore, calls for quick customer services where I should ensure that the teaching staffs are quickly served their coffee ensuring that they spend the less possible time ordering and getting it. 8 1.1.4 Cornerstone 4: Organisation 8 Discovering my products industry’s organisation will enable me to save on the production expenses as I focus on profit maximisation. This means that I will have to analyse the production process of the product which will help me in establishing the number of workers to be hired in every department. I will, therefore, have to come up with an organisational chart which will help in the allocation of the task, therefore, boosting efficiency in the products production process and also cutting on the irrelevant expenses. This Cornerstone will also help in assessing the productivity of each employee which will lead to laying off the less productive workers or putting relocating them to another department and 8 1.1.5 Cornerstone 5: Core group expertise 9 Understanding my business model will help me in discovering the expertise core group within my employees. This will guide me in making the right changes and reform within my business model. On the other hand, another hand it will also help identifies the delicate employees group which I should focus more on in to boost productivity. In this case, I identified customer service providers as the expertise core which is crucial for successful business operations (Revilla and Fernandez, 2013). This led me to organise for special short training courses for these employees in an effort to improve their customer relation skills. 9 1.1.6 Cornerstone 6: Core group drive 9 Through understanding my business model the core drives for different groups of my employees. This will help me know the different motivational strategies to take up in order to improve productivity within the business venture. This will also guide my annual appraisal methods which will now be governed by the core group drives. On the other this will determine the goals set for the employees through a review of the core group derives. 9 1.1.7 Cornerstone 7: Customer Relations 10 Customer relations is a delicate issue for a business intending to improve its sale margin for my business which relates to fast food, therefore, needs to improve on this issue. This will need detailed training on the employees from this department of the business which will boost the customer relation skills. On the other hand, this might call for the layoff of some people who might be struggling with communication. Alternatively, for the highly productive employee who might be struggling in customer relation, I will relocate them to another department of the business where their skills might be more beneficial (Pehrsson, 2007). 10 1.1.8 Cornerstone 8: Other relations 10 With this business model being quite diverse it is ideal to consider other relations while dealing targeting business growth. Some significant issues which I will consider are the quality of service provided in an effort to boost customer quality. In this case, I will ensure that the customer feedback is responded to quickly and acted upon. On the other hand with the business being food related I will ensure that hygiene is observed. The other issue to handle in the business is promoting teamwork and unity among the employees. I will handle this issue by conducting annual team building functions for the employees. On the other hand, I would also embrace the concept of job rotation within the business which would also boost diversity and flexibility within the business’s productivity (Pagès, n.d.). 10 2.0 Greiner model 11 Greinerclaims that in the growth and development of they go through a series of phases. He also claims that during the transition period from one growth phase to another some crisis are bound to occur. Similarly, in my businesses growth and development, it will go through some similar stages. Therefore, I have take-up some issues as a precaution for the occurrence of this crisis in different growth stages. 11 2.1.1 Creativity phase 11 My business’s entry in the Creative Phase is driven by my own creative force and the product type and its response in the market. My product has embraced creativity by choosing for a unique type of coffee rather than the common local coffee. This creative force will be driven by the perception of a taped niche on introducing Arabic coffee to the growing appreciation of cuisine foods (Takahashi, 2012). I line with creativity in the business I intend to start delivery of coffee to the student’s hostels and in the school staff’s offices. On the other hand, I will also introduce discounts for bulk purchases. 11 2.1.2 Direction phase 12 In this phase, I will employ professional in management to lead the business. This entails getting top-notch and experienced business managers who are more experience educated in this line of business. This will help in improving the businesses planning and come up with tactics that boost the business operation plans and strategy. In this stage, I will also separate various business activities such as budgeting and marketing in order to boost productivity. 12 2.1.3 Coordination phase 12 In this growth phase of the company, I will concentrate on leadership within the business. On the other hand, I will introduce bureaucracy at all levels within the business in order to ensure that funds are uses effectively, and the decisions made by the business are positive to it. I will also ensure that an audit of the financial business books is carried out frequently in order to flag out any miss appropriation of funds. 12 2.1.4 Alliances phase 12 3.0 Burn’s Model 13 3.1.1 Discovery 13 3.1.2 Engage 14 3.1.3 Consolidate 14 3.1.4 Monetise 15 Appendix 16 References 24 GROWTH PLAN 1.0 Introduction Over the years, business growth has been a difficult task, especially for small or new businesses. This analogy is proven recent research which suggests that only one-tenth of 1 percent of companies hit the $250 million in annual revenue mark. Narrowing down this relevation one can note that mere 0.036 percent, hit the $1 billion mark in annual sales (Dandekar and Doherty, 2014). Going by these statistics one can, therefore, claim that it is a common trend in business where businesses often start small but end up staying in that position for rest of the time they are in operation. This paper, therefore, bring out a strategic plan that can be taken by accompanying which will foster its growth through application of Burn’s Greiner and Klofsten’s business models. 1.1 Klofsten’s model I will use Klofsten’s business model to describe my business since my business model can similarly be broken down into various department. My business model can be broken down into sales, productivity, marketing, and processing. This creates a relation between Klofsten’s business model and my business model. Klofsten’s business model can, therefore, be used perfectly to foster growth into my business with the use of the eight cornerstones highlighted in this particular business model (Greiner, n.d.). 1.1.1 Cornerstone 1: Idea My business idea is to run a joint venture with the school’s cafeteria and catering department where I would offer my quality coffee to potential customers who include students, lectures, and other staffs. The cafeteria and catering department can allow us to put up a coffee stall within the school’s cafeteria and in return, we will use coffee mugs and cups branded with the school logo as a marketing strategy for the school. A joint venture, in this case, is the most relevant idea since I will be able to mount a coffee stall at a strategic place within the school; in the cafeteria (Greiner, n.d.). Using our coffee sales to market for the school is a strategy taken up to ensure that the school is also indirectly benefiting from our venture, therefore, easing their decision to give us space within the cafeteria. 1.1.2 Cornerstone 2: Product My product is Alqahawa coffee which is an Arabic cuisine stimulant drink which can be served in various ways. This means that the customers have the preference to order various types of coffee. This product is a plus since it is a unique product with its competition being only the locally prepared coffee which lags behind in terms of quality compared to Alqahawa. Choosing this product will ensure I create ease in availability of Arabic coffee for the target market giving the product a competitive edge compared to other Arabic coffee brands which are not readily available within the school premises. On the other hand, I will focus on the product’s quality since it will foster the products growing reputation. I will also focus on the concentrations of milk cream, coffee, water and other additives which will enable us to strike a great balance between the concentrations of ingredients used in the preparation of the product, therefore boosting the products quality. 1.1.3 Cornerstone 3: Market Putting up a stall within the school premises means that the market for my product is the school students, staffs and visitors. Therefore, I need to exploit this market by studying different scheduled of my target market, for instance, I should note that the students often do not have breakfast in their hostels or home most of them take their breakfast in the school cafeteria. Therefore, I should ensure that the Alqahawa coffee is ready by this time for me sell to these students. I should also note that the teaching staffs like to carry their coffee with them to class in order to save time. This, therefore, calls for quick customer services where I should ensure that the teaching staffs are quickly served their coffee ensuring that they spend the less possible time ordering and getting it. 1.1.4 Cornerstone 4: Organisation Discovering my products industry’s organisation will enable me to save on the production expenses as I focus on profit maximisation. This means that I will have to analyse the production process of the product which will help me in establishing the number of workers to be hired in every department. I will, therefore, have to come up with an organisational chart which will help in the allocation of the task, therefore, boosting efficiency in the products production process and also cutting on the irrelevant expenses. This Cornerstone will also help in assessing the productivity of each employee which will lead to laying off the less productive workers or putting relocating them to another department and 1.1.5 Cornerstone 5: Core group expertise Understanding my business model will help me in discovering the expertise core group within my employees. This will guide me in making the right changes and reform within my business model. On the other hand, another hand it will also help identifies the delicate employees group which I should focus more on in to boost productivity. In this case, I identified customer service providers as the expertise core which is crucial for successful business operations (Revilla and Fernandez, 2013). This led me to organise for special short training courses for these employees in an effort to improve their customer relation skills. 1.1.6 Cornerstone 6: Core group drive Through understanding my business model the core drives for different groups of my employees. This will help me know the different motivational strategies to take up in order to improve productivity within the business venture. This will also guide my annual appraisal methods which will now be governed by the core group drives. On the other this will determine the goals set for the employees through a review of the core group derives. 1.1.7 Cornerstone 7: Customer Relations Customer relations is a delicate issue for a business intending to improve its sale margin for my business which relates to fast food, therefore, needs to improve on this issue. This will need detailed training on the employees from this department of the business which will boost the customer relation skills. On the other hand, this might call for the layoff of some people who might be struggling with communication. Alternatively, for the highly productive employee who might be struggling in customer relation, I will relocate them to another department of the business where their skills might be more beneficial (Pehrsson, 2007). 1.1.8 Cornerstone 8: Other relations With this business model being quite diverse it is ideal to consider other relations while dealing targeting business growth. Some significant issues which I will consider are the quality of service provided in an effort to boost customer quality. In this case, I will ensure that the customer feedback is responded to quickly and acted upon. On the other hand with the business being food related I will ensure that hygiene is observed. The other issue to handle in the business is promoting teamwork and unity among the employees. I will handle this issue by conducting annual team building functions for the employees. On the other hand, I would also embrace the concept of job rotation within the business which would also boost diversity and flexibility within the business’s productivity (Pagès, n.d.). 2.0 Greiner model Greinerclaims that in the growth and development of they go through a series of phases. He also claims that during the transition period from one growth phase to another some crisis are bound to occur. Similarly, in my businesses growth and development, it will go through some similar stages. Therefore, I have take-up some issues as a precaution for the occurrence of this crisis in different growth stages. 2.1.1 Creativity phase My business’s entry in the Creative Phase is driven by my own creative force and the product type and its response in the market. My product has embraced creativity by choosing for a unique type of coffee rather than the common local coffee. This creative force will be driven by the perception of a taped niche on introducing Arabic coffee to the growing appreciation of cuisine foods (Takahashi, 2012). I line with creativity in the business I intend to start delivery of coffee to the student’s hostels and in the school staff’s offices. On the other hand, I will also introduce discounts for bulk purchases. 2.1.2 Direction phase In this phase, I will employ professional in management to lead the business. This entails getting top-notch and experienced business managers who are more experience educated in this line of business. This will help in improving the businesses planning and come up with tactics that boost the business operation plans and strategy. In this stage, I will also separate various business activities such as budgeting and marketing in order to boost productivity. 2.1.3 Coordination phase In this growth phase of the company, I will concentrate on leadership within the business. On the other hand, I will introduce bureaucracy at all levels within the business in order to ensure that funds are uses effectively, and the decisions made by the business are positive to it. I will also ensure that an audit of the financial business books is carried out frequently in order to flag out any miss appropriation of funds. 2.1.4 Alliances phase The final stage is to address any internal growth crisis which might come up through an external viewpoint. The main goal I can address this issue on growth is through mergers and acquisitions. I will partner with the schools catering and cafeteria department in order to put up a coffee stall. This partnership will also extend to the functions served by these departments where I will provide coffee to the attendees. In order to build a strong relationship for these business alliances, I will set up my business goals in line with that of the other business am merging with (Takahashi, 2012). This will ensure that we work towards common goals, therefore, eliminating fallouts and differences. 3.0 Burn’s Model Paul Burn claims that business growth is determined by various factors which are all dependent on the market. He also claims that in order to achieve this business growth various strategies have to be taken up by these businesses’. This mean this analogy should also be placed in my businesses point of view. This also means that these strategies should be founded on the principle of customer satisfaction. Growth in my business can be instigated trough borrowing some of Burn’s business model principles. 3.1.1 Discovery In this stage, I will try to find a fit between my product and the market. In this course, I will strive to conduct a market research and understand the niche in my current product market. In this case, I noted that the market was concentrated on locally processed coffee. Therefore, I set to introduce Arabic coffee into the market. On the other hand, through market research and analysis I noted that foreign cuisine dishes had received a great reception from this market. Therefore, chances of my Arabic coffee product getting the same reception into the market are quite high. Therefore, I was able to gauge the market wants and my products in determining if it’s the best to fit for the market (Wiklund, Patzelt and Shepherd, 2007). In line with this stage, I also noted that that there was variable minimal Arabic coffee as a product in the market. This was an incentive towards my business venture since it meant I would face minimal direct product competition. 3.1.2 Engage This stage involves tuning the product in order to increase the engagement of the product with its market. In this case, I will conduct usability to determine the quality of my product. I will check on the balance of ingredient and additives used to process the coffee as I determine it taste in the long end. I would also analyse the quality of service offered by the employees by checking the waiting time of a customer intending to make an order and the response time on a query from a potential customer (Revilla and Fernandez, 2013). I will also check on customer satisfaction regarding the product they got and services received. I will also use a test revenue model in analysing the markets acceptability of my product. This will be used to determine whether to make some changes regarding the product in an effort to make it more acceptable in the market. 3.1.3 Consolidate This stage entails analysing the early business take-off into the market and its current performance. In this case, I will carry out data-driven marketing analysis by comparing the business sales per different target markets. On the other hand, I will also analyse the barriers facing the product in the market finding reasons for each barrier (Pehrsson, 2007). I will also determine the business growth by conducting an awareness driven survey where I will determine the impact of the earlier conducted marketing in the creation of product awareness. 3.1.4 Monetise This stage generally entails looking at the overall product performance in the market; this entails determining it marketability, sales, expenses in production, and growth in the future. I will, therefore, conduct a sale analysis on the product sales compared to the duration that it has been in existence. Regarding its future performance, I will analyse the product market focusing my scope of the similar product or those that it shares similar services with (Pagès, n.d.). On the other hand, I will also determine the products upsell and cross-sell ability as I analyse it future performance in the market. I would also define the requirement needed for the product to perform well in the market through evaluation of various options to solve this problem. Appendix References Dandekar, P, & M Doherty, "A mechanistic growth model for inorganic crystals: Growth mechanism". in AIChE Journal, 60, 2014, 3720-3731. Greiner, A, "Fiscal Policy in an Endogenous Growth Model With Human Capital and Heterogenous Agents". in SSRN Electronic Journal. Pagès, H, "A Note on the Gordon Growth Model with Nonstationary Dividend Growth". in SSRN Electronic Journal. Pehrsson, A, "The “Strategic States Model”: strategies for business growth". in Business Strategy Series, 8, 2007, 58-63. Revilla, A, & Z Fernandez, "The dynamics of company profits: A latent growth model". in Strategic Organization, 11, 2013, 180-204. Takahashi, T, "Capital Growth Paths of the Neoclassical Growth Model". in PLoS ONE, 7, 2012, e49484. Wiklund, J, H Patzelt, & D Shepherd, "Building an integrative model of small business growth". in Small Bus Econ, 32, 2007, 351-374. Read More