Introduction
Adequate growth is the fundamental concern of every given firm. Growth of a company entails the increase in the production output, growth in profit making and the general expansion of the enterprise regarding share and market capture. Every firm has a team of management designated the role of ensuring the positive growth of the company. Companies are structured into different departments. Each department within the business is mandated to carry out specific activities. Both the management and the employees of a given firm are responsible for the growth of the company. Management ensures the employees work hard by the stipulated principles, values and norms of the enterprise to ensure the objectives of the firm are achieved. Employees also cooperate with the management to ensure high production level in the industry. Departments such as the sales and marketing department of the enterprise also provide the products produced by the firm have ready market. They also provide surplus production by the operation to exhaust the market demand.
Problem of statement
Growth stall is detrimental to the progress of any given company. Stall in growth rate of any firm leads to the decrease in the efficiency of operation level in the enterprise. Different factors are responsible for the stall in the growth rate of the business. Premium of any company is very significant to the growth of the enterprise. This indicates the capital level of the company and the strength of the business in the capital market. Backfire in the premium position of the operation results in significant reduction in the growth level of the enterprise (Nason, et al. 2015). Every company must ensure they have a team of expert's cable of responding to the new shift in the market tastes and premium. Tastes and preferences of consumers in the market is subject to continuous changes. These changes may be relative or as a result of the technological shifts in the market. Lack of adequate response to these changes in consumer tastes and preferences can reduce the premium level of the firm. This, therefore, leads to the reduction in the premium value of the enterprise. Failure of the company to respond to these changes, therefore, leads to the growth stall of the company. The firm must also analyze the new and the low-cost rivals in the market effectively to ensure that it does not lead to changes in the consumer tastes and preferences. This the firm does by ensuring the business can respond effectively to the variations in the technology in the market.
Creation of new commodities and methods of production is very significant to the growth of every single firm. Management of every company must ensure the innovation rate in the enterprise is improved. Change results in the production of new goods and services which attract a larger group of consumers in the market. Mismanagement of the innovation process by the management of the firm, therefore, results to significant stall in the growth rate of the company (Nason, et al. 2015). Business should ensure a management policy where the supervision level of the production and innovation process in the firm is very high. Administration of the company must, therefore, manage, monitor and fund the change process of the enterprise. Mismanagement of the process of innovation primarily leads to stall in the growth rate of the firm.
Balance in the enterprise is key to the growth of the business. Balance of the business in the new markets, core markets and the existing market is very fundamental to the increase of the specific firm. Firms must, therefore, ensure the enterprise fully exploits all the opportunities in the core markets and the current markets. The company must fully utilize any market gap. Lack of balance between these factors leads to stall in the growth rate of the firm. Lack of opportunities to be employed by the business results in significant losses made by the enterprise. This later results in the stall of the growth rate of the firm. Experience within a firm is primarily important. Experience leads to effective and reliable production by the company. Lack of skilled and experienced staff and leaders in the business leads to underproduction in the firm. This, in turn, leads to the stall in the growth rate of the firm. Executive of the firm must, therefore, comprise of skilled and experienced staff to ensure growth rate is maintained and is high enough.
Analysis of the issues
It is the responsibility of every firm to provide the speed of increase is significantly high. The firm must ensure the business rectifies the factors that are responsible for the stall in the growth rate. Firm must make sure experienced management team and staff to ensure constant production level within the enterprise (Murphy, et al. 2016). The main cause of stall in the growth rate of the firm is the reduction in the demand level from the consumers. Reduced demand level causes reduction in the sale output of the firm. This leads to the reduction in the profits made by the firm and thus the stall in the growth rate of the firm. Firm must also ensure the technology level in the firm is of high standards and able to cope with the market changes. The firm must also provide the research level of the firm is of quality standards. This enables the firm to dictate the opportunities available in the market and thus reduce the rate of growth stall in the firm.
Recommendation for the strategy
Various strategic policies can be used by the business to ensure there is no chance of growth stall in the firm. Encouraging the employees by the use of better salaries and wages ensures the production level of the firm is maintained at high standards. This provides high growth rate by the enterprise. Technological advancement results in the ease of production and research level by the firm. Technical advancement by the firm provides the market is thoroughly researched and understood by the firm. This will ensure that the firm is in a position to fully exploit any opportunity that arises in the market. This will also enable the firm to ensure that the demands of the various customers are satisfied with a lot of flexibility in the firm. Technology, therefore, control many factors within the firm. A firm should, therefore, ensure the technical ability of the firm is very high. Technological advancement is thus the best strategy to increase the growth rate of any firm. Technological improvement in the firm increases the ease of carrying out different activities of the firm. This will ensure all the departments in the firm are effective and flexible. Technological improvement also increases the level of understanding the market and the rate of service delivery by the firm. Technical improvement ensures the promotional and advertisement activities of the company are efficient and cover a greater geographical location (Murphy, et al. 2016). This, therefore, creates a larger market for the products of the firm. Profit maximization of the company is achieved and the growth rate of the firm is significantly boosted. This strategy, therefore, ensures the stall in the growth rate of the firm is minimized.
Conclusion
Stall in the growth rate of any company is inimical to the future of the business. Every firm should ensure all the forces responsible for the stall in the growth rate of any firm is significantly minimized. When the growth of any firm stalls the entire activities of the firm also reduces. This leads to losses incurred by the firm. Losses made by the firm affect all the stakeholders of the firm. Every firm experiencing stall in the growth uses different policies to ensure this phenomenon is regulated and erased in the firm. This system may include reducing the number of employees or reducing the salaries and wages to reduce the rate of losses made by the firm. All stakeholders of the firm should ensure they work towards improving the growth rate of the firm. Firms must also ensure the policies used by the firm increase the production rate and provide the improved growth rate of the firm.
References
Murphy, K. M., & Topel, R. H. (2016). Human Capital Investment, Inequality and Economic Growth (No. w21841). National Bureau of Economic Research.
Nason, R. S., & Wiklund, J. (2015). An Assessment of Resource-Based Theorizing on Firm Growth and Suggestions for the Future. Journal of Management, 0149206315610635.
