Monday, 9 March 2009
Sustainable Growth
Ideally, Sustainable Growth (SG) is a value over and above the Sustainable Funding Streams (SFS), COP and COC, of a business operating under a Sustainable Economic Model (SEM).
However, an existing business operating under the classical Unsustainable Economic Model (UEM) can be converted to a 'Sustainable Size' (SS), which is a proportion of its current size.
The UEM to SEM converstion tool is flexible and it allows every business to set its own SS as a proportion of its current size or growth level without having to adhere to a strict computational rule. The resulting liquidity value from the conversion is the SFS of the business. A Business can grow as normal but, under sustainability rule, this should be done relative to the SFS Growth level, such that when measured both stay or remain approximately the same.
However, an existing business operating under the classical Unsustainable Economic Model (UEM) can be converted to a 'Sustainable Size' (SS), which is a proportion of its current size.
The UEM to SEM converstion tool is flexible and it allows every business to set its own SS as a proportion of its current size or growth level without having to adhere to a strict computational rule. The resulting liquidity value from the conversion is the SFS of the business. A Business can grow as normal but, under sustainability rule, this should be done relative to the SFS Growth level, such that when measured both stay or remain approximately the same.
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