Similarities And Differences Between The Growth Strategies Business Essay

Sing that the Italian industrial context is dominated by medium and little size household concerns, the intent of this research is to place how these have grown in the past old ages, how they are be aftering to turn in the hereafter, the presence of common turning schemes and evaluate similarity and differences between the schemes adopted and those proposed by bookmans.Methodology – The research will be conducted in two stages: the first one will be a big graduated table study carried out through the usage of questionnaires. This is aimed to place 6-7 representative companies to analyse more deeply. The 2nd stage will be based on one-to-one interviews with the proprietors and direction staff of the chosen concerns. The research will utilize a both deductive and inductive attack and will prove the undermentioned hypothesis:Hypothesis – Italian household concerns prosecute growing in really different ways diverse from those proposed by bookmans.Value – After a deep research on the subject, this survey will lend to the literature in different ways.

First, an initial research footing on the topic will be built leting future research developments on the subject. In add-on, the analysis will supply Italian household concerns with a tool to better understand their state of affairs and the environment where they are runing. Furthermore, it will supply an inducement to prosecute different growing schemes from the 1s adopted, in order to accomplish higher and more sustainable growing rates.

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Key Wordss

Growth, Strategies, SME, Family Business, Famyly-owned, Italy, Italian, Owner-managers


Family endeavors are houses in which the bulk of the capital is held by one, or few, households connected from ties of comparative, affinity or solid confederations. They still represent the dominant concern theoretical account all over the universe.

In Italy, they account for about 83 % of the figure of medium and little capital endeavors ( Corbetta et al. , 2002 ) ;Less than half of all family-owned houses, nevertheless, survive into the 2nd coevals, less than a fifth are still feasible into the 3rd coevals and about none reaches the dimension of most public corporate companies. Firms with greater household control are prone to exhibit lower rates of gross revenues growing than executable, given fiscal public presentation. For most household concerns, growing is limited non by financing restraints but by family-related attitudes ( AnaA?s Hamelin, 2009 ) .

Objective and Aim

The intent of this survey is to supply a important part to the literature on the subject, to measure the different schemes adopted by little and average Italian Family concerns and attendant coherencies or disagreements with those proposed by bookmans and to verify or deny the being of common and generic growing schemes.


Although a significant sum of literature relates to the analysis of the best growing schemes, about nil has been said about those adopted by Italian little and average household endeavors. In add-on, holding studied entrepreneurship for many old ages, in Italy foremost and in the UK so, I recognize that there are some disagreements in the literature related to SMEs. What is taught to be winning growing schemes for SMEs in the Italian attack differs a batch from what taught in the Anglo-Saxon 1. This research will non merely provide lucidity on the subject but it will besides represent an of import tool for enterprisers of little and average companies to be awarded of the environmental state of affairs and to see different and more effectual growing schemes from those used.

The Research inquiry

Sing the Italian context, is it possible to place common and generic growing schemes adopted by the bulk of Family Businesses? Do these schemes differ from those proposed by bookmans?In order to supply an reply to the inquiry above it is necessary to see what follows:Evidences of growing within the context of Italian Family BusinesssOwner-managers ‘ attitude sing company ‘s growing:Apparent greater reluctantly of household concerns to affect independent managers on company boards than non-family houses.

Pro-growth vs. growing suppressing attitudeGrowth Schemes:Cleavageenlargement outside company ‘s nucleusacquisitions and confederationsOther schemesThe concluding consequence that this research aims to accomplish is to verify or reject the undermentioned hypothesis:Italian little and average Family Businesses prosecute different growing schemes from those proposed in the entrepreneurship literature.

Literature Review

This research will pull upon entrepreneurship literature such as the growing theoretical accounts, household concern and SME in literature in general.

For the intent of this research a sample of Small and Medium household concerns will be explored, in an effort to understanding the growing kineticss, this is explained in item subsequently. To understand the focal point of this survey it is necessary to supply ; foremost, a definition of this class of endeavors, and of the quantitative and qualitative standards that will be used in choosing the companies and, 2nd, of the elements which characterize a company ‘s turning way.With respect to company dimension, we will follow the undermentioned standards: no more than 250 employees and an one-year turnover lower than 50 million euro ( Article 2 of the Commission of Recommendation ) . With respect to the company administration, household concerns will be identified as those in which “ the bulk of decision-making rights are in the ownership of the natural individual ( s ) who established the house [ aˆ¦ ] or in the ownership of their partners, parents, kid or kids ‘s direct inheritor ” where “ at least one representative of the household or family is officially involved in the administration of the house ” ( Direction General Entreprises Et Industrie, 2009 ) .Turning to growing, as Weinzimmer et Al. ( 1998 ) underlined, it is a dynamic step of alteration and bookmans have historically used a really broad scope of quantitative and qualitative tools to specify man-made growing indices. These are largely based on the analysis of independent variables measured utilizing secondary informations beginnings ( Weinzimmer et al.

, 1998 ) . However, really few researches have been conducted to place which are the most appropriate steps of organisational growing ( Birley & A ; Westhead, 1990 ) . In order to carry on this survey, the attack used to measure endeavor growing, is whether the endeavor has experienced ‘growth ‘ in the undermentioned countries ( Hangstefer, 2000 ) :Market place strengthOrganizational verveProductivity additionFiscal public presentationStakeholder value producedAfter measuring growing utilizing the listed growing measuring standards, the following measure will be to compare the schemes adopted by companies which achieved positive additions in all the countries above. To ease easier comparing and lucidity of the consequences ‘ analysis, quantitative values will be used in measuring companies ‘ public presentation.

In the entrepreneurship literature, there is a significant sum articles associating to growing schemes that scholars suggest little and medium concern might prosecute. For this survey, the most relevant classs and their chief representative faculty members have been identified:Change in company ‘s unit of concern and in the public presentations on bing cardinal prosodies ( McGrath & A ; MacMillan, 2005 ) . For a company ‘s success is indispensable to specify what its competitory advantage over challengers is. Harmonizing Michael Porter, every company bases its activities on two macro classs of market schemes: distinction ( niches ) and cost leading. Companies which compete on the cost are by and large the biggest 1s, able to make economic systems of graduated table and cost advantages over rivals. This work surveies the instance of SME ; to research why SMEs do bad cost leaders ( Welsh & A ; White, 1981 ) and the impossibleness of a ‘price-clash ‘ with the giants of the market. The lone scheme that these companies can successfully prosecute is distinction.

In their survey, McGrath & A ; MacMillan underlined the possibility for companies runing in markets of trade goods or ill differentiable merchandises to distinguish their offer fiting clients ‘ demand. They suggest, through market cleavage, the displacement from selling mere merchandises to value for clients. In add-on to that, the writers identified some company ‘s key prosodies which are mostly responsible for organisation ‘s public presentation. By the combined alteration of these factors, the concern can prosecute low hazard growing.Growth, making new growing platforms ( Laurie, Doz & A ; Sheer, 2006 ) . In their survey, the writers identified NGPs as a powerful tool to measure and catch new market chances where develop new lines of merchandises or services in countries outside company ‘ nucleus and hence warrant sustainable growing rates. This is a model that many companies use to widen their ain specific capablenesss into new markets. NGPs consequence from the lucifer between industry ‘s invention and market ‘s macro tendencies, unmet clients ‘ hurting and company ‘s capableness to fulfill that hurting.

Acquisitions and confederationsHBR BOOKItalian household concern theoretical accounts: deficiency of literature justifies this survey.

Research Design

The research aims to make an in deepness survey of the growing schemes adopted by Owner-Managers of Italian little and average household concerns. An inductive/deductive attack will be used and the initial exploratory survey will be followed by the confirmation of one hypothesis ( Bryman & A ; Bell 2007 ) .

The inductive component of the research is the analysis of the growing schemes adopted by this class of companies in the yesteryear and the 1s that are planned to be used in the hereafter whereas the deductive component will be the testing of the hypothesis that household SMEs adopt growing schemes that differ from those proposed by bookmans. In order to obtain he information needed for the survey, the research will be conducted in two stages. Both will affect primary informations aggregation. The first one will be a big graduated table study carried out through the usage of questionnaires. This is aimed to place 6-7 representative companies to analyse more deeply. The format used will be phone interviews with endeavors ‘ representatives where the interviewer and interviewee will work together to make full a structured questionnaire. At this phase, respondents are asked to supply largely quantitative informations.

These are related to the public presentation achieved over a five old ages clip in the undermentioned country: market place strength, organisational verve, productiveness addition, fiscal public presentations and stakeholder value produced ( Hangstefer, 2000 ) . Once natural informations are collected, they need to be organized and categorized in order to place the 6-7 companies in the sample that experienced the highest growing rates.These identified 6-7 companies will be the focal point of the 2nd stage of the research. At this phase the interviewer will roll up primary informations through semi-structured face-to-face filmed interviews with owner-manager of the selected houses.

The intent of this 2nd stage is the designation of the schemes adopted by these companies to prosecute growing. Giving the expected great assortment of schemes adopted and considerations that drove to those picks, the information collected will be chiefly qualitative ( e.g. enterpriser ‘s premises, background, drivers etc ) . Interviews will hold clip restrictions ( 10 proceedingss ) and a preconceived set of inquiries to cover. In this manner the focal point can be maintained on the relevant facets and the undermentioned comparing survey will be facilitated. Once informations are collected and organized, an analytical initiation analysis ( Bryman & A ; Bell, 2007 ) will be used to find whether or non there are grounds of general growing schemes pursued by a relevant sum of Italian little and average household concerns.

Afterward, the identified adopted schemes will be compared to those proposed by bookmans: Growth through cleavage, enlargement outside company ‘s nucleus, acquisitions and confederations ( literature reappraisal ) in order to measure similarities and differences. If similarities are found to be, the hypothesis will be disproved ; if non the hypothesis are verified.

Practical and Ethical Issues

Undertaking Planing



Birley, S.

, & A ; Westhead, P. ( 1990 ) . Growth and public presentation contrasts between “ types ” of little houses. Strategic Management Journal, 11: 535-557.CorbettaWeinzimmer, L.G. et al.

, 1998. Measuring organisational growing: Issues, effects and guidelines. Journal of Management, 24, pp. 235-262Hangstefer, J ( 2000 ) . REVENUE MARGIN. A Better Way to Measure Company Growth. Strategic Finance, Vol.

82 Issue 1, p40-44, 5pWelsh, J. & A ; White, J. ( 1981 ) A Small Business Is Not a Small Large Business.

Harvard Business Review, Jul-Aug 1981, pp. 18-32


Bryman, A. & A ; Bell, E. , 2007. Business Research Methods. 2nd erectile dysfunction. Oxford: Oxford University Press

Web sites

Official Document

Official Journal of the European Union, Article 2.

Annex of Recommendation. 2003/361/European Commission.Rapport Final du Groupe d’Experts. Promotion de la competitivite diethylstilbestrols PME2009. COMMISSION EUROPEENNE. Direction General Entreprises Et Industrie


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