Managing the Development of a Multinational: the Path from a Growth Company to a Value Company

Abstract

The economy of any country is characterized by a state of flux, i. e. development. Under such conditions, its elements evolve, adjusting to the conditions created by the external environment. Therefore, in different market segments, companies choose between two different development strategies, which have opposite objectives: to expand or to maximize profits. This has resulted in the emergence of growth companies and value companies on the world stage. At a certain point it is inevitable that a business will transform from a growth company to a value company when there is no opportunity for further market growth.The aim of this paper is to determine the optimal business development model of the company, to transform it into a ‘value company’ by ensuring organic growth. To achieve the goal, the author sets the following objectives: to outline the differences between growth and value companies, to provide relevant examples from global and Russian practice, to highlight the prerequisites for the transition from growth strategy to profit maximization. The object of the research is company development management, and the subject is management approaches providing target levels of company development.