The major aim of every business undertaking is to enhance sound performance and scale high levels of growth. Although emerging firms always find it hard to enter new markets, competition from already established firms was fierce and it frustrated all effort geared towards growth of infant firms. The ability to measure learning and growth of an institution through penetration of new markets cannot be quantified. Critically, the growth of an organization is determined by how well the firm can reach out new consumers. This can be done through various ways, but the principal ones include: market segmentation and geographic expansion. On the same note, the ability to measure how perfect a market can be segmented remains a hard nut to crack. Every firm has its unique way of penetrating new markets; to others it remains to be their secret weapon (Lamb, Hair & McDaniel, 2011). Before Norton Kaplan’s research that led to a modern way of measuring performance, the balanced score card. The method insists on the framework to be used by management to link various metrics of measuring performance.
Norton commended that the firm’s performance should be measured from four perspectives: shareholders, innovation and learning, internal business and customers perspectives. All employees were to be evaluated based on their performance. Through this metric, penetration of new markets could only be measured through involved participants of the origination (Niven, 2011). On innovation and learning perspective, Kaplan stated that managers should work on a collaborative aim of enhancing growth through innovation as it was the only way new markets could be reached. Additionally, stiff competition could only be fought if firms could adopt sophisticated ways of production aimed at reducing the cost of production.
References
Lamb, C., Hair, J., & McDaniel, C. (2011). Essentials of Marketing (7 ed.). New York: Cengage Learning.
Niven, P. (2011). Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies (2 ed.). London: John Wiley & Sons.
