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Chapter
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1
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Introduction
to Hypergrowth Strategies
This chapter considers how hypergrowth:
is the rapid expansion of an organization;
is not restricted to the private, commercial sector
but can be seen in governmental and voluntary organizations;
can be ephemeral; often occurs at times
of rapid technological change; has been a feature
of organizational life since the eighteenth century.
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2
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What
Is Meant by Hypergrowth?
This chapter examines the following concepts relating to hypergrowth:
Hypergrowth occurs when an
organization is growing at a much faster rate than other similar
organizations. Hypergrowth may be successful
or unsuccessful. The latter often leads to the demise of the
organization. A rapidly increasing market share
is an indicator of hypergrowth. Cashflow and
the input of resources need very careful control during a
period of hypergrowth. Hypergrowth organizations
are most likely to be found at the adolescence stage of the
organizational life cycle. The adolescence
stage is also when companies are most vulnerable to takeovers.
A succession of high market share in a growing market
(stars) are a feature of successful hypergrowth companies.
Governments etc. may step in to limit hypergrowth if
they feel that the stability of the market is threatened or
that a monopoly is developing. |
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3
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The
Evolution of Hypergrowth
This chapter examines how hypergrowth has evolved. It explains
how: Hypergrowth began with
new ways of financing ventures in the eighteenth century as
more and more of the general population in developed countries
had an opportunity to invest. The Industrial
Revolution brought about a transformation in both communication
and the size of organizations laying the foundations for even
greater hypergrowth. Henceforth growth occurred
in industry rather than as a result of land ownership.
Both world wars, devastating as they were, gave companies
opportunities to expand and brought forth technological developments.
Since 1945 the ICT, finance and leisure sectors have
experienced hypergrowth. Growth in dot-com
companies was initially very rapid but many investors pulled
out as it became apparent that quick returns were not to be
had. |
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4
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The
E-Dimension
This chapter explores how: The
development of the Internet has allowed all kinds of companies
to expand their customer base. The vast majority
of organizations whether in the private or public sector now
have a presence on the Web. Suppliers of Internet‐related
products have been best placed to take advantage of the growth
in the Internet and e-commerce. Some of these companies, e.g.
Cisco, have experienced hypergrowth. There
is still a reluctance among some consumers to purchase online.
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5
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The
Global Dimension of Hypergrowth
This chapter discusses how: Hypergrowth
will often involve organizations moving into global markets.
The globalization aspects of hypergrowth are political
and social issues, in addition to economic ones. Inducements
are often offered by governments in order to attract expanding
foreign companies. As Nike discovered, consumers
in the developed world are increasingly concerned about human
rights. Growing globally involves taking on
board new methods of doing business that are in tune with
local culture reasons for going global.
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6
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Hypergrowth
Strategies: The State of the Art
This chapter explores the following current trends:
Strategy can be a plan, a ploy, a pattern, a position
or a perspective. Improperly managed hypergrowth
can be destructive. Hypergrowth leads to increased
profits and power. Hypergrowth provides the
company with considerable bargaining power with both its suppliers
and customers ¿ power that should be used fairly.
The survival of suppliers is important to the hypergrowth
company. Wage costs can be cut by relocation.
Joint ventures, franchises, mergers, and acquisitions
are means of entering new markets. Cashflow
can easily become a problem during rapid expansion as exposure
increases. Customers, their gaining and retention
are the ultimate factor in hypergrowth.
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7
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Hypergrowth
Success Stories
What are the secrets of hypergrowth? This chapter explains
the phenomenon of hypergrowth by case studies on:
Carnival Group; Airbus Industrie; and
Samsung. |
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8
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Key
Concepts and Thinkers
Get to grips with the lexicon of hypergrowth through the ExpressExec
hypergrowth glossary in this chapter, which also covers:
key concepts; key thinkers.
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9
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Resources
for Hypergrowth Strategies
This chapter identifies some of the best resources available
for studying hypergrowth including:
general texts; specific texts;
journals and magazines; Websites.
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10
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Ten
Steps to Hypergrowth
This final chapter provides some key insights into managing
hypergrowth, covering the following steps:
know the customer; understand the market;
sort out the money; be at the cutting
edge; control costs; remember
the value chain; be the best; forge
alliances; have and communicate a vision;
control the growth. |