Business Development & Renewal Process,Dr. Elijah Ezendu FIMC, FCIM, FIIAN, FBDI, FAAFM, FAAPM, FCCM, MIMIS, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CCIP, CMC,Objectives,At the end of this course, participants would be able to do the following: Explain business life cycle Distinguish between business growth and business development Explain the concepts of business development Identify the process for implementing business renewal Coordinate execution of business renewal within a firm,“In growing, highly competitive businesses, the life cycles predictable patterns help CEOs and their managers develop insight as to what problems need to be corrected first.”- Jack Veale, The Business Life Cycle,What is Business Life Cycle?,A business life cycle depicts the stages of advancement which a business goes through in the course of activities.,Executives and managers must be able to identify the actual position of a firm and the next destination in its business life cycle, in order to establish appropriate business plan for driving the business portfolio in accordance with strategic intent.,Contemporary Model of Business Life Cycle,Formation,Growth,Maturity,Decline,Stage I,Stage II,Stage III,Stage IV,Seven-Stage Model of Business Life Cycle,Seed,Start-Up,Growth,Established,Expansion,Mature,Decline,Innovate,The First Stage (Seed),This is the conception of business as an idea or clicking thought Highlights: Resolution on ownership structure and business advisors Challenges: Finance and MarketHR Focus: Availability of Appropriate Talent,The Second Stage (Start-Up),At this juncture, the business commences operation as a legal entity and attempts to move its products or services to consumers. Highlights: product development, customer base, competitiveness, cash flow management and market presence Challenges: Strategy, Competitive Intelligence, HR and Financial Planning HR Focus: Human Resource Composition, Organisational Systems and Reward Management,The Third Stage (Growth),This involves great increase in customer base and revenue. Highlights: Modulated Financial and Management Systems, Increased Administrative Protocols, and growth in staff strength Challenges: Delegation, Managerial efficiency and effectiveness HR Focus: Talent Management, Career Path Analysis, Cultural Alignment, and Performance Management,The Fourth Stage (Established),At this stage, the business goes through a momentary slow-down in growth rate and upholds its market share. Highlights: Cost Management, Productivity Enhancement, Outsourcing, Alliance Development and Management, Business Process Reengineering plus Increased Automation Challenges: Organisational Agility, Strategic Roadmap Management HR Focus: Motivation, Performance Reengineering, and Retention,The Fifth Stage (Expansion),This parades exploration and exploitation of markets for evolving the business. Highlights: Aggressive Marketing, Highly Structured Value Engineering, Channel Development and Management, Alliance Development and Management, and Technology-Driven Competitive Advantage Challenges: Diversification Strategies, Investment Management and Strategic Alignment HR Focus: Human Resource Development, Workload Analysis and Management, and Organisational Development,The Sixth Stage (Mature),This is characterized by great drop in sales growth and occurrence of negative cash flow. Highlights: Cost Management, Financial Management and Market Challenges: Organisational Leadership HR Focus: Leadership Development and Reward Management,The Seventh Stage (Decline/Innovate),At this point, the business tends to stray into moribundity and its leaders may decide to innovate for growth and expansion or allow it to continue declining and finally harvest the assets. Highlights: Financial Management, Due Diligence, Competitive Intelligence, Strategy and Corporate Restructuring Challenges: Ownership Resolution, Strategic Alignment, Opportunities Profiling and Decision Dynamics HR Focus: Organisational Restructuring, Human Resource Planning and Retention,Business Growth,Business growth involves the increase in top line through increased sales or enhancement of bottomline by decreasing cost.,Why the Focus on Business Growth,Capacity Utilization Increase in Profit Increase in Market Share Survival Visionary Drive Prestige Exploitation of Opportunities Influence Knack for Accomplishment,The Focus of Business Growth,Business Growth focuses on each stage of the a business life cycle. Business growth strategies are usually short term and structured to suit the events and conditions at the particular position where a firm is located in its business life cycle.,Business Development is a process, programme, technique and system for mapping, optimizing and controlling the value flowage of an organization from strategic intent to worth consumption.,Levels of Business Development,Product Level of Business Development,Incremental Development: This focuses on growing the functionality and relevance of current bundles of value proposition. For example, moving an item to a level of additional functionality by adding more features. Disruptive Development: This is geared for evolving novel innovation to embody fresh bundle of value proposition. For example, bringing forth a totally new product.,