SURVIVAL

STRATEGIES IN
BUSINESS
1. NON-GROWTH STRATEGIES
Refers to the strategy where there is no growth in earnings. This does not
necessarily mean no turnover. A company might pursue a non-growth strategy, if
it saw its non-economic objectives as more important than its economic
objectives.
The primary reason for adopting a non-growth strategy may include:
• Pressure from public opinion
• Maintain an acceptable quality of life
• Lack of enough additional staff with sufficient expertise and loyalty
• Enable the owner-manager to retain personal control over operations; and
• Dis-economic of scale of the particular production set-up
NEGATIVE GROWTH STRATEGY
Paying out dividends larger than current earnings, so that share
holders are effectively receiving a refund of their capital
investments, and there is a net fall in assets employed.
- One objective is to increase the percentage return to the
shareholders- if the company pulls out of the least profitable
areas of its operation, it will increase it’s overall return of
investment, although the total investment will be less
2. CORRECTIVE STRATEGIES
A non-growth strategy certainly does not mean that the company
can afford to be complacent. A considerable amount of
management time should be devoted to consider the actions
needed to correct its overall strategic structure to achieve the
optimum. This involves seeking a balance between its overall
strategic structures to achieve the optimum. This involves
seeking a balance between different areas of operations and also
seeking the optimum organization structure for efficient
operation.
thus although there is no overall growth (or negative
growth occurs) the company will shift its product market
position, employ its resources in different fields and
continue to search for new opportunities. In particular, the
company will aim to correct any weaknesses which it has
discovered during its appraisal. For this reason the
term corrective strategy is also used. A non-growth
strategy is bound to be a corrective strategy, but a
corrective strategy can also be used in conjunction with,
or as one component of, a growth strategy.
RISK-REDUCING CONTINGENCY
STRATEGIES
A company faces risk because of its lack of knowledge of the future. The
extent of the risk it faces can be revealed by the use of performance-risk 
gap analysis, where forecasts of the outcome in n years’ time takes into
account not only the likely return but also the risk involved. While on the
subject of risk, it should be remembered that although it is desirable to
reduce risk, risk is inevitably involved in any business. 

GAP ANALYSIS-  the process of comparing your actual

business performance with your desired performance to see
what's missing. You can use these analyses to create company
strategies and identify possible shortcomings in your business
Different ways of looking at risk:
• Risk which is inevitable in the nature of the business; this risk should be
minimized as above.
• Risk which an organization can afford to take. In general, 
high return involves higher risk and a company which is in a strong position
might be prepared to take a higher risk in the hope of achieving a high return.
• Risk which an organization cannot afford to take. A company cannot afford to
commit penny (and perhaps an overdraft as well) to a risky project. In the event
of failure it would be left in an extremely vulnerable position and could even face
winding up.
• Risk which an organization cannot afford not to take. Sometimes a company is
forced to take a risk because it knows that its competitors are going to act and if it
does not follow it could be seriously left behind.
COMPETITIVE STRATEGY
• The higher the competition in your industry, the harder it is to keep pace. When
you enter a concentrated market, you should set a high bar, or else you won’t
manage to compete with your business opponents, especially with those who
sell similar products.
• To build a successful business in such a competitive environment, you should
thoroughly analyze your competitors’ strengths, weaknesses, and advantages.
Take into account all possible threats as well. Consider researching the needs,
problems, and preferences of your potential clients to cope with this task. They
can tell you what your current products lack so that you can enhance them
accordingly.
• With a thought-out competitive strategy, businesses can make more informed
decisions and constantly improve their products or services.
Types of Competitive Strategies
1. Costleadership strategy. It suits large businesses that can produce a big
volume of products at a low cost, and that is why Walmart implemented this
strategy. It means that companies using a cost leadership strategy are the
lowest price sellers on the market. Hence, the cost price of a product should be
low to make a profit. This is possible with the help of large-scale production
and high capacity utilization along with a variety of distribution channels. The
competitive advantage within this strategy is the lowest price.
2. Differentiation leadership strategy. This is a killer strategy that allows brands
to stand out among competitors. It requires identifying a unique quality that
makes a company different. With this strategy, businesses become superior to
their rivals on the market, which allows them to charge more for their products.
Starbucks and Apple belong to brands using this strategy.
1. Costfocus strategy. This strategy is similar to the cost leadership
strategy in terms of providing customers with the lowest price. The only
difference is that a cost focus strategy implies targeting a specific market
segment with its unique needs and wants. This way, it’s easier for
companies to establish brand awareness. Companies using this strategy
often concentrate their efforts on geographic markets with special needs.
2. Differentiationfocus strategy. Companies using this strategy also focus
on specific market segments, but their driving force is the unique value.
While cost focus strategy means providing the lowest price in a small
niche, differentiation focus strategy means improving the product with
the help of unique features that will make your company stand out on the
market. For example, there are a few hotels in Egypt or Turkey for adults
only. This way, people can relax and be sure that no child will bother
them.
 10 Tips to Survive And Thrive In Business
Today
1. Always do your research

Before starting a business, it's essential to do your research and ensure that you clearly understand your industry, target
market and competition. You don't want to invest money into something without knowing if there is an audience for it or
if there are other similar businesses out there. The research will save you time and money in the long run!

2. Get involved in your local business community

Get to know other local business owners and entrepreneurs. Joining a networking group can help you meet people in
similar situations as you and who can offer advice and support.

Attend local business events. These are great opportunities to network and learn about what's going on in the business
community.

Get involved in local politics. Knowing what's happening at the city and county levels can help you make informed
decisions about your business.

3. Embrace change

Change is one of the few constants in business. The ability to embrace change and adapt to new situations is critical for
any entrepreneur who wants to survive and thrive. If you're in a rut, try looking at your problem from a different
perspective. Sometimes all it takes is a fresh look at things to find an answer or solution. When faced with challenges, try
not to think about the past because there's nothing you can do about it now. Instead, focus on what you need to do now to
get out of your current situation.
4. Save, save, save...and save

One of the best pieces of advice for entrepreneurs is to save as much money as possible. This may seem
complicated, especially when you're just starting, but it's important to live below your means and put away as
much money as possible. This will help you weather any tough times that come your way and give you a
cushion to fall back on when things get tough.

5. Figure out what works for you

Entrepreneurs need to find a way of working that suits them. What works for one person might not work
for another, so it's essential to experiment and find a routine that helps you get the most out of your day.
Finding what works for you also means understanding how to delegate tasks when necessary. So many
people want their business to be about themselves, but if you don't have time or ability in an area,
delegate it to someone who does. This will free up time in other areas where your skills are needed.

6. Go with your instinct and believe in yourself

As an entrepreneur, you're going to have to make a lot of decisions. Some of them will be easy, but
others will be adamant. When you're stuck, you must go with your gut instinct. You know your business
better than anyone else, so trust yourself to make the right call.

As an entrepreneur, you will face many challenges and obstacles. Believing in yourself and your ability
to overcome these challenges is essential. If you don't believe in yourself, no one else will. You must
think you can do anything and everything it takes to make your business successful. You have the power
to do it!
7. Stop comparing yourself to others
One of the quickest ways to kill your motivation and confidence is to compare yourself to others. When you're constantly
comparing your progress (or lack thereof) to others, it's easy to get discouraged. After all, it's easy to compare ourselves to
those who are further along than us and feel like we're falling behind. Everyone's journey is different. What works for
someone else might not work for you, and vice versa.

8. Stay positive!
As an entrepreneur, you will face challenges and obstacles. It's important to stay positive and keep a good attitude. A positive
attitude will help you push through tough times and come out on top.

9. Don't burn bridges

Whether you're starting a business or working for someone else, it's essential to maintain positive relationships with the
people you encounter. You never know when you might need their help, so it's best to keep things amicable. Additionally,
your personal relationships will have an impact on your business. If you're having trouble with one of your clients, the quality
of work that goes into that client's project could be negatively impacted, resulting in fewer future sales.

10. Be efficient with your time

Lastly, be advanced with your time. Try a new system that can save you time by streamlining your operations. Also, ensure
you clearly understand your target market and what they want from your business. A timely plan guarantees efficiency with
your time and customers and allows you to focus on more critical tasks.

Source: https://www.entrepreneur.com/growing-a-business/10-ways-to-thrive-in-business/433645
Assignment:
1.)Talking about risk, explain why are technological
risks are difficult to manage?
2.) In your opinion what is the best survival strategy
that a business need to posses in today’s time?

Submit here:
https://drive.google.com/drive/folders/141dmBui-
91dpXNsEKxDZtYC04C4sRN96?usp=sharing