I have come a cross this word "negative external growth opportunities" during reading an article. what i understand by this is external growth opportunities that are value deteriorating i.e. that create negative impact on share price of the firm!
can anyone explain exactly what does this means?
- Transform external threats into opportunities
- Space enough opportunities for new growth by "de-cluttering" that which is marginal or ineffective.
- Catalyze seemingly "negative" times into positive moves
Hi Asad Rind
The Negative External Growth is referred to decrease/ falling of prices/ sales volume/ turnover, market price of a share of the company due to many factors which is detrimental to the positive growth of the company.
"negative external growth opportunities" may mean that the business growth opportunities for a firm is declining due to negative forces in its external business environment such as intense competition, low customer retention, changes in technology and government policies. In other words, better to say that environmental turbulence threats the growth of businesses.
Perhaps a situation where an internationalization strategy would be interpreted as a weakness by the capital markets because the firm is trying to to distract from on-going problems at the homefront by shifting the focus away from its domestic quagmire. When diversification of markets is actually spreading resources too thin to be effective overall.
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