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[Column] Growth Trajectory of Small and Medium Enterprises 2: Stability Period

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■Stabilization Period When viewed in terms of sales, the stabilization period shows about 500 million yen for manufacturers, around 1 billion yen for wholesalers, and about 700 million yen for retailers. Entering the stabilization period brings two significant changes within the company. The first is the ability to begin comparing with the previous year. The second is that management starts to distance itself from the operational front lines. In small and medium-sized enterprises, the president leads from the front, driving growth. However, once in the stabilization period, it becomes necessary to have a factory manager to oversee production or a sales manager to handle sales. As a result, management must shift its focus from day-to-day operations to organizational management and steering the company. The number of employees also grows from 10 to 20, and from 20 to 30. It becomes difficult for the president to remain the top person on the ground indefinitely. The president must shift gears to focus on management tasks. In other words, without building management skills suited to the company, further growth cannot be expected.

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An era where AI conceptualizes value propositions and strategies.

A detailed explanation of the new value creation mechanism depicted by the meaning network!

Generative AI has garnered attention for its outputs such as text and image generation, but its potential is now expanding into the realm of business strategy. What we have built is a "group of AI agents that recommend strategies and value propositions." This system goes beyond partial analysis by AI and consistently constructs the entire strategy and value creation process itself. *For more details, you can view the related links. Please feel free to contact us for more information.*

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[Column] ➃-➀ The Background of Small and Medium-Sized Enterprises' Presidents as a Race

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Can't you even do this? Don't you understand such things? How many times have small business owners felt like they were biting into a bitter bug? It takes time to bridge the gap between 'gut feeling' and 'common sense' in both mind and heart. Gut feeling refers to events in the field, while common sense is the value system shaped by the environment one grew up in. This difference troubles business owners. Many company presidents would say their natural personality is suited for a No. 2 position. However, whether they became founders by choice, became business owners out of necessity, or are second-generation successors who must take over, the fact remains that they are currently business owners. Small businesses are often disorganized entities lacking people, goods, money, and management. Yet, because they have to bring together such organizations, small business presidents become a 'common breed.' If they manage small businesses with the aforementioned characteristics for 20 or 30 years, they inevitably become a common type of small business owner.

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