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Organic Growth Strategy

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  • #54726

    BMGI India
    Participant

    I came across a new term ‘Organic growth strategy’. I am new to this. Is there anyone aware to this terms and its importance? Is this a part responsibility of hired strategic consulting firm?

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    #196869

    Robert Butler
    Participant

    Run a Google search on the term – you will get the phone book.

    Here are the first three that popped up after I typed in the term

    http://smallbusiness.chron.com/organic-growth-strategy-57130.html

    http://www.ashgate.com/pdf/SamplePages/Strategic_Negotiation_Ch6.pdf

    http://www.ashgate.com/pdf/SamplePages/Strategic_Negotiation_Ch6.pd

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    #196878

    Oscar
    Participant

    Hello,

    We use a lot the “Organic” term at work. When we plan the next year sales and PNL, every business divides the current sales in two:

    -Base sales: Sales that are usual and need strategies to maintain or grow. Several key accounts and distributors make this baseline sales. Consider every year there’s a natural growth or contraction to be considered.

    -Organic: Every new business, account, application or product introduction that represents Growth with new sales. This potential sales should come from a “hopper”.

    -Erosion: Some business units have this clear, others try to estimate it. Its very important to consider erosion to calculate the next year’s number.

    In terms of strategy, every business owner should know the relevance of any of these concepts to achieve growth and maintain current sales.

    Hope I added something t help.

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