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1. Expansion:
Expansion is one of the forms of internal growth in the business. It means enlargement or increase in the same line of activity. Expansion is the natural growth of a business enterprise taking place in course of time. In the case of expansion, the enterprise grows on its own without joining hands with any other enterprise. There are three common forms of business expansion.
2. Diversification:
Diversification is the most common form of internal growth in the business. As mentioned above, expansion has its own limitations to business growth. Diversification is evolved to overcome the limitations of business growth through expansion. A business cannot grow beyond a certain point by concentrating only on the existing product/market.
In other words, it is not always possible for a business to grow beyond a certain point through market penetration. This underlines the need to add the new products/markets to the existing ones. Such an approach to growth by adding new products to the existing product line is called ‘diversification’.
3. Joint venture:
The joint venture is a type of external growth strategy adopted by business firms. A joint venture could be considered as an entity resulting from a long-term contractual agreement between two or more parties, to undertake mutually beneficial economic activities, exercise joint control, and contribute equity and share in the profits or losses of the company.
The Reserve Bank of India (RBI) has defined a joint venture in the technical sense as: “a foreign concern formed, registered or incorporated in accordance with the laws and regulations of the host country in which the India party makes a direct investment, whether such investment amounts to a majority or minority shareholding.”
4. Mergers and Acquisitions (M&A)
Mergers and acquisitions are yet other forms of external growth strategy. A merger means a combination of two or more existing enterprises into one. For the enterprise which acquires another, it is called ‘acquisition.’ For the enterprise which is acquired, it is called ‘merger.’ Thus, merger and acquisition are the two sides of the same coin.
If both organizations dissolve their identity to create a new organization, it is called consolidation. The other terms used for M&A are absorption, amalgamation, and integration. M&A is more popularly known as takeovers. For more than three decades after Independence, the normal route of growth was through licensing and setting up new projects.
5.Sub-Contracting:
A sub-contracting relationship exists when a company (called a contractor) places an order with another company (called the sub-contractee) for the production of parts, components, sub-assemblies or assemblies to be incorporated into a product sold by the contractor. Such orders may include the processing transformation, or finishing of material or part by the sub-contractor at the request of the contractor.
5. Franchising:
In a sense, franchising is very much akin to branching. Franchising is a system for selectively distributing goods or services through outlets owned by the retailer or dealer. Basically, a franchise is a patent or trademark license, entitling the holder to market particular products or services under a brand name or trademark according to pre-determined terms and conditions.
David D. Settz has defined franchising as a “Form of business ownership created by contract whereby a company grants a buyer the rights to engage in selling or distributing its products or services under a prescribed business format in exchange for royalties or shares of profits. The buyer is called the ‘Franchisee’ the company that sells rights to its business concept is called ‘Franchiser.’
Thus, franchising can simply be defined as a form of contractual arrangement in which a retailer (franchisee) enters into an agreement with a producer (franchisor) to sell the producer’s goods or services for a specified fee or commission.
How to grow sales through packaging
Packaging is the perfect combination of design, content, shape and color that conveys the company’s relevance, not just protecting the product or putting it in a container.
EFFECTS OF POOR PACKAGING ON BUSINESS GROWTH
- IT COULD DAMAGE THE PRODUCT
Have you ever bought a damaged item before you got home? Yes, this is a bad package. The point is that even loyal customers can break their loyalty if all the products they buy are slightly damaged due to packaging. Product damage also negatively impacts the financial cost of the product through refunds, sales, or significant discounts, endangering brand identity.
- POOR PACKAGING AFFECT SALES
The market is already crowded and competitive, so if you want to make your product stand out, you will need to make your packaging physically attractive. Did you notice that phone brands are constantly optimizing their gadget packaging? This is how iPhone and Samsung have penetrated the customer’s mind. The downside is that poor product packaging doesn’t stare at you or increase sales. Bad packaging is bad for salesmanship.
- POOR PACKAGING CAN DESTROY YOUR BRAND REPUTATION
One mistake you don’t want to make as a business person is to soil the image of our brand. Have you ever heard the African adage that says a good name is better than a house of riches? This is the same in the business space, your brand reputation is very important to your business growth.
Now that you know the cons of poor packaging on business growth, let’s dive into the effects good packaging has on business growth.
EFFECTS OF GOOD PACKAGING ON PRODUCTS
- DISPLAYS AND PROMOTES THE PRODUCT
Many products, especially groceries, contain ingredient descriptions and nutritional information on their packaging. Other product packages may contain instructions that explain how to set up and use the product. Displaying important information about your product helps you manage consumer expectations and increase customer satisfaction. The better you understand what the buyer is buying, the more likely you are to be satisfied with the purchase.
- ATTRACTS YOUR BUYERS
Many products, especially groceries, contain ingredient descriptions and nutritional information on their packaging. Other product packages may contain instructions that explain how to set up and use the product. Displaying important information about your product helps you manage consumer expectations and increase customer satisfaction. The better you understand what the buyer is buying, the more likely you are to be satisfied with the purchase.
- DIFFERENTIATES THE PRODUCT FROM COMPETITORS
As you walk down the aisles of the store, it quickly becomes clear that there is no shortage of new and interesting products on the market. Separating products from competitors’ products is very important, as many retailers often put similar products on shelves. Well-crafted, eye-catching product packaging is a great way to do just that. The size and shape of the package are similar to the competitors, but the design must be different. The colors, fonts and styles you choose for your packaging can easily help you differentiate your product from the competition. Innovative designs, such as clear plastic boxes, attract consumer attention and help differentiate products.
IN CONCLUSION
The goal of every business is to be profitable, businesses do not exist for charity. And profits come by the consistent selling of products. If the business does not sell it cannot grow. And good packaging puts the odds in their favor, it gives businesses a better chance to grow.
Cc: John Omokayode (BHO)
Tea or Coffee
A hot cup of coffee can perk you up in the morning. A soothing cup of tea can help you relax after a stressful day. And the latest research about the health benefits of each might help you feel a little better about them, whichever beverage you drink.
The WHO’s International Agency for Research on Cancer recently took coffee off its list of suspected carcinogens, and some research suggests it could help keep colon cancer from coming back after treatment. Other studies suggest drinking coffee might stave off Alzheimer’s and Parkinson’s diseases.
Various studies have pointed to tea drinkers having lower odds of skin, breast, and prostate cancers. Researchers are still trying to pinpoint the exact ways that happens. But tea, particularly green tea, is rich in compounds like antioxidants, which can limit cell damage and boost the immune system; and polyphenols, which have been shown to lower blood pressure and cholesterol. It also may help stave off Alzheimer’s disease through a polyphenol known as EGCG, which prevents the formation of plaques that are linked to that brain-damaging illness.
Is one better for you than the other?
Experts say that’s hard to say. That’s because it’s difficult to separate out their different ingredients, their role in your diet, and their effects on different body systems.
Researchers say it’s hard to pinpoint exactly how both drinks affect health. Both coffee and tea are “complex beverages” that contain a variety of ingredients. They include caffeine, polyphenols, and antioxidants — compounds researchers are studying for their potential cancer-fighting properties, says Lisa Cimperman, a clinical dietitian at University Hospitals Case Medical Center.
Some people have tried to isolate one element in tea or coffee that they think is the secret to one effect or another, “and then they realize that it doesn’t have the same effect.”
Another recent study, led by Charles Fuchs, MD, director of the Gastrointestinal Cancer Center at Boston’s Dana-Farber Cancer Institute, found regular coffee drinking may help prevent colon cancer from coming back after treatment.
In his study of nearly 1,000 patients, Fuchs says, there was a “significant and linear” association between drinking coffee and lower risk of colon cancer returning in those who drank four or more cups a day. “The more coffee they drank, the lower risk of recurrence.” But the researchers aren’t clear on which element of the drink contributed to that result, and there didn’t seem to be any effect from drinking tea, he says.
“The quality of your diet is always the sum of all the parts.”
Medically Reviewed by Brunilda Nazario, MD on December 23, 2016
