The application of growth strategies by Athi River Mining Ltd

Abstract

A firm that does not attempt to grow will not merely stand still but also stagnate and eventually die. On the other hand well planned expansion is not only stimulating and self sustaining but also present to the executive a challenge similar to the one of difficult climbs in mountaineering. In addition to the managerial stimulus, growth confers tangible financial and strategic benefits to the firm. In the short-run the productivity of the firm is likely to rise as rate of output increases. As the size of the firm increases it is likely to reap economies of scale at both production and managerial levels. The case study method was used in handling this research problem. Yin (1984) observes that Case study research excels at bringing us to an understanding of a complex issue or object and can extend experience or add strength to what is already known through previous research. Case studies emphasize detailed contextual analysis of a limited number of events or conditions and their relationships. The data for the research was mainly from both primary and secondary data. The primary data included in-depth interviews, using an interview guide with senior managers of Athi River Mining Ltd. These included the Deputy CEO, Finance Manager, Marketing Manager and Processing Manager. The main tool applied was content analysis. This was necessitated by the fact that this case study involved study of a single firm Application of any growth strategies presents various challenges to the firm. A firm wishing to pursue growth must therefore put in place sufficient resources to be able to counter these challenges. Market development across national borders has unique challenges due to the need for the firm to comply with laws and regulation in various countries. Apart from the different legal frameworks in different countries, there are also varied social cultural settings which must be surmounted for the firm to effectively develop a new market for its products. In order to sustain an effect market penetration to sustain There are many reasons for pursuing a diversification strategy, but most pertain to management's desire for the organization to grow.