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Profitable Growth
Profitable Growth is the combination of profitability and growth, more precisely the combination of Profitable growth#Economic Profitability, Economic Profitability and Growth of Free cash flows. Profitable growth is aimed at seducing the financial community; it emerged in the early 80s when shareholder value creation became firms’ main objective. Profitable Growth stresses that Profitability and Growth should be jointly achieved. It is a break from previous firms’ development models which advocated growth at first to achieve economies of scale and then profitability (see BCG Growth-share matrix). A study by Davidsson et al. (2009) found that small and medium-sized firms (SMEs) are much more likely to get a position of high growth AND high profitability starting from high profitability/low growth than from high growth/low profitability. Firms with the latter performance configuration instead more often transitioned to low growth/low profitability. Brännback et al. (2009) repl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profitable Growth
Profitable Growth is the combination of profitability and growth, more precisely the combination of Profitable growth#Economic Profitability, Economic Profitability and Growth of Free cash flows. Profitable growth is aimed at seducing the financial community; it emerged in the early 80s when shareholder value creation became firms’ main objective. Profitable Growth stresses that Profitability and Growth should be jointly achieved. It is a break from previous firms’ development models which advocated growth at first to achieve economies of scale and then profitability (see BCG Growth-share matrix). A study by Davidsson et al. (2009) found that small and medium-sized firms (SMEs) are much more likely to get a position of high growth AND high profitability starting from high profitability/low growth than from high growth/low profitability. Firms with the latter performance configuration instead more often transitioned to low growth/low profitability. Brännback et al. (2009) repl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |