M52GrowStrategy & Growth· Module 2
Growth Strategy
Growth happens by accepting every opportunity. The business ends up in markets it doesn't understand.
- Grow
- Scale
- Strategy
- Customers
- ~5 min · Matrix
The business problem
Many businesses grow opportunistically: a new product because a customer asked, a new branch because space became available, a new market because a competitor went there. Some bets work; others drain cash and attention from the core.
Why it matters
Growth options differ in risk, cost and fit. Evaluating them deliberately lets you pursue the growth that builds on your strengths and avoid expensive distractions.
What you will learn
- Identify growth options: existing customers, new customers, new offers, new markets
- Assess risk and fit for each
- Estimate investment and return
- Sequence growth so the core stays strong
Core questions
- Where can we grow with existing customers and offers?
- Which options build on what we already do well?
- What will each option need in cash, people and management time?
- What is the order of our growth moves?
Work through the module
CaseWhat is happening?
Dairy processor, 80 people · Illustrative teaching case
A dairy processor considers exporting, launching a yoghurt line and supplying school feeding programmes. Assessing each option shows that the school programme builds on existing products and routes and needs little investment, while export needs certification and capital the business does not have. It sequences the options accordingly.
DecisionWhat does the leader need to decide?
Pursue every attractive option now, or sequence growth by fit and risk?
FrameworkHow should they think about the problem?
Growth options matrix
Existing customers × existing offers (penetration) is lowest risk; new customers × new offers (diversification) is highest. Score each option on attractiveness, fit and cost, then sequence.
ToolWhat can they use?
Growth options scorecardMatrix
- List growth options
- Place each on the matrix
- Score attractiveness, fit and cost
- Choose and sequence the top two
ApplicationHow does it apply to their business?
Apply it to your own business:
- List every growth idea on the table
- Score them
- Choose the next two and what you will defer
ImplementationWhat changes?
What should change in the business:
- Write an investment case for each chosen option
- Assign an owner and milestones
- Protect core operations while growing
ReviewDid it work?
How to tell whether the change worked:
- Is each growth option meeting its milestones?
- Is the core business still performing?
- Have deferred options been revisited at the agreed time?
After this module you should be able to decide
Pursue every attractive option now, or sequence growth by fit and risk?
And leave with: A prioritised set of growth options with a sequence.
Sequence · Strategy & Growth