Strategic Planning in the Small Business

Unit

3

Content

Process

either

perceived costs, limited

demand re­

lative

to their other products,

or an inabil­

ity to fill the niche

at an acceptable

price.

As in the single product/market

posture,

this posture can

be high reward strategy,

but always possesses

the risk of a more

able

competitor suddenly

moving into the

niche.

a The expansive

growth posture

A

business that assumes

an expansive

growth

posture builds on

one or more of

the

previously discussed

postures.

Due

past success and a promising

outlook,

management realizes

there are opportuni­

ties to

expand the company's

scope of

operations.

An

expansive growth posture

will generally

take one

of two forms.

First,

the business may undergo

an expan­

sion

of its primary location.

This may

entail enlarging

the present facility

or re­

locating to a

larger facility. There

is no

attempt to alter current

products or mar­

kets.

In fact, it is

the overall strength

of the

market and acceptance

of the products

that necessitates expansion.

The business will

do the same things it has

always done, but additional

capacity will

enable

it to reach larger numbers

and

hopefully realize

greater returns.

A second form of

expansive growth

is

when a business

establishes additional

facilities

in promising new market

areas.

A multi-location approach is orier'i,;d
to­

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