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OPINION

How to identify a great
growth company

?:ŽSY?ŽYEEG?s

Corporate Finance and Advisory Manager at ABC Capital.

Philip Fisher is known as the father of value 3GDRD?QRSPTDRSHNMRENBTRNM 1#CNDRMrSMDDCSNRODBH?B@KKX
investment and wrote about stock picking @RODBSRNESGDATRHMDRRSGD?QRS consist of a department that sits at
that would get him great investment returns focuses on potential on sales and the SGDGD@CN?BDBNMRS@MSKXRDMCHMF
over the long run through both bad and company’s ability to sustain those. The out researchers to ask questions to
good economic times. RDBNMCHR@ANTSOQN?SL@QFHMR
SGDFDMDQ@KONOTK@SHNMSN?FTQDNTS
what to do next. The company’s sales
'DHCDMSH?DCONHMSRSG@SGDSGNTFGS@ According to Philip Fisher, long term ENQBDBNTKCAD@MD?DBSHUDO@QSNESGD
company that would achieve great long term growth companies must be thinking company’s research and development
returns can be considered against. Let us of always improving market share and team that encourages a culture of
BNMRHCDQSGD?QRS
OQN?SL@QFHMR
'NVCNDR@BNLO@MX asking feedback that should be relayed
do that? SNGD@CN?BD@MXSHLD

They are the following;
A company that is focusing on growing The company interacts with the market
Does the company have the products sales must have a sales department on a day to day basis and, on the
NQRDQUHBDRVHSGRT?BHDMSL@QJDS and strategy that allows it to do strength of this, is in a very strong
potential to make possible a sizable exactly this in whatever market space position to secure critical information
increase in sales for at least several it operates. Students of marketing are from the market as it interacts with the
years? familiar with the concept of the four Ps market.
of marketing. They are Product, Price,
Does the management have a Promotion and Place. Someone once said that the only
determination to continue to develop constant in life is change. Those
products or processes that will still A strong marketing company will be in business know that the average
further increase total sales potentials competitive when its products meet BTRSNLDQHR?BJKD
'DBG@MFDRGHR
when the growth potentials of @RODBH?BL@QJDSMDDCG@UD@FNNC tastes and preferences constantly and
currently attractive product lines price, are promoted well and have a the company must keep up with this.
have largely been exploited? good network to deliver the products. Therefore, the company should make
use of this information that it has
'NVD?DBSHUD@QDSGDBNLO@MXrR A good company will be thinking secured from whatever means it has
QDRD@QBG@MCCDUDKNOLDMSD?NQSRHM of how to sell more products at all to keep developing new products that
relation to its size? times and that will include creating keep capturing the changing tastes and
@MD?DBSHUDR@KDRMDSVNQJ
3VN preferences of its customers.
Does the company have an above companies that stand out in this regard
average sales organization? in Kenya are Safaricom and Equity Of course, converting research to
Bank whose services are available quality products is not easy but the
Does the company have a worthwhile everywhere thanks to their early and best companies will have a culture and
OQN?SL@QFHM D?DBSHUDTRDNESGD@FDMBXLNCDK
a system that will allow this to happen
with enough regularity to keep the
What is the company doing to The other very important point in this company relevant long into the future.
L@HMS@HMNQHLOQNUDOQN?SL@QFHMR QDF@QCHRSNN?DQOQNCTBSRSG@S@KKNV
the general population, no matter Lastly just as a company should count
the disposition of the individual, to on quantity of sales to push revenues,
identify a product that they like with it must also count on great margins
the company. This is achieved largely SNOTRGOQN?SR
/QN?SHR@ETMBSHNMNE
through the research and development two things; great prices and low cost
(R&D). production.

46| SACCO Star Magazine