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Coach, Inc.

In: Business and Management

Submitted By LJF917
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Every organization faces the obstacle of continued growth at one point or another. Coach, Inc. is just one of the many companies that face the hindrance of continued growth and competition. According to Liabotis (2007), “far too many companies fail to achieve their growth targets in revenue and profitability. However, the probability of achieving profitable growth is heightened whenever an organization has a clear growth strategy and strong execution infrastructure. One without the other impairs the probability of success. Most businesses fall short of achieving their growth objectives for revenue and profitability. In fact, studies report success rates as low as 20%” (para. 1). Why is growth so indefinable? Based on research and experience, there are two major reasons. According to Liabotis (2007), those reasons include “inadequate consideration of opportunities within the core business, adjacent to the core business or within new customer sub-segments and an organizational infrastructure that cannot support successful execution” (para. 1). However, managers can do positive things to improve the chances for success.
Two factors that can lead to achieving growth and increasing the probability of success are to strengthen the execution infrastructure by investing in safe bets and initiating a process to identify strategies with a high probability for success. In strengthening the execution infrastructure by investing in safe bets, “a firm’s infrastructure must be up to a standard that supports successful execution. An on-going commitment to creating such an infrastructure is a ‘safe bet’. Achieving this requires (1) eliminating departmental or regional silos, (2) utilizing leading indicators and performance drivers that align with the strategy and (3) growing leaders at all levels – managerial and non-managerial” (Liabotis, 2007, para. 2). In initiating a process to…...

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