We talked about the importance of managing businesses with a strategic perspective regardless of their scales. While making strategic decisions, the business must first make a detailed external and internal environmental analysis. Strategies should be determined with the awareness of threats and opportunities in the external environment by determining its strengths and weaknesses. At the end of these analyzes, companies have 3 options as basic strategy. These are growth, stagnation and shrinkage strategies. Growth strategies are divided into two as integration and diversification. Growth strategies, which are the expansion methods of the business and its fields of activity, will be explained in this section.

3.1. Integration strategies

If the current product lines and market in which a company operates have a real growth potential, the company may prefer to grow in this way by concentrating its resources on these product groups and market. This is the first strategy that companies that have adopted a growth strategy have put into practice before trying different strategies. There are two types of integration strategies, horizontal and vertical.

3.1.1. Horizontal Integration

Horizontal growth is when a firm expands its operations by expanding the range of products and services offered to existing markets, adding complementary products and processes and / or to different geographical regions. Studies show that firms that prefer horizontal growth by expanding their product lines have higher survival rates. Firms can achieve horizontal growth through their own internal resources, or through collaborations, strategic partnerships, mergers and acquisitions with firms in different geographic regions (Wheelen & Hunger, 2012).

3.1.2. Vertical Integration

Vertical integration can be defined as the start of the activity and / or process that the supplier or distributor performs in an area where the company operates (Wheelen & Hunger, 2012). If the expansion in the activities of the business is directed to the inputs and / or production factors used, this is called retroactive vertical growth. If the expansion in the business activities is towards the consumer, this is called vertical growth forwards. In other words, starting to perform forward activities on the industry's value chain is defined as forward integration, and starting to perform backward activities as vertical growth backward (Ülgen & Mirze, 2010).

3.2. Diversification Strategies

One of the strategic responsibilities of the upper level in businesses is the studies and decisions to determine the work to be done and the areas where the company will do business. Diversification is defined as the focus of the business on new business areas and new jobs that can increase its income and enable it to grow (Ülgen & Mirze, 2010). Diversification strategy often appears as an option as companies grow larger and their current activities run out of growth opportunities. This situation is particularly related to the life cycle of the industry. A diversification strategy emerges as an option when an industry matures and most of the firms operating in that industry reach growth limits using vertical and horizontal growth strategies. If firms want to continue to grow, the firm may have no choice but to diversify across different industries (Wheelen & Hunger, 2012). There are two basic diversification strategies, related and unrelated diversification.

3.2.1. Related Diversification

It can be said that the firm applies a related diversification strategy in case the firm that aims to grow “engages in new business in its current business areas or similar subjects” (Ülgen & Mirze, 2010, p. 224). Firms aim to reduce the risk of new activities by undertaking similar businesses in areas where they have knowledge, with the advantage of their experience. The company uses these strengths as a means of diversification by focusing on its core competencies that provide a competitive advantage. The firm tries to achieve strategic fit by doing business in a new industry where existing product knowledge, production capabilities and marketing skills can be used (Wheelen & Hunger, 2012). The company will be able to create additional benefits by using its current assets and capabilities in new products and businesses with associated diversification (Ülgen & Mirze, 2010). Thus, the competencies of the enterprise will develop, the synergy will be utilized, revenues will increase and the enterprise will reach its growth targets. Related diversification can be done with the company's own resources, or it can be implemented through strategic partnerships, mergers and acquisitions with other companies.

3.2.2. Unrelated Diversification

Contrary to the related diversification, the fact that the firm enters into new businesses in sectors and business areas that are very different from the sector and business areas in which it operates can be interpreted as the firm applies an unrelated diversification strategy (Ülgen & Mirze, 2010, p.224). For companies, the decision to enter business areas where they do not have experience is a difficult decision. The management may choose to grow through unrelated diversification, realizing that the current sector is no longer attractive and will not provide the opportunity for firm development and growth. Another reason is that the firm realizes that it lacks unique talents and skills that can be easily transferred and / or applied to related products or services in other industries. With unrelated diversification, the firm can choose to acquire new skills that will provide it with competitive advantage and create value because unrelated diversification means starting a business from scratch. This makes unrelated diversification a more risky strategy (Wheelen & Hunger, 2012). In unrelated diversification, the company may start to operate in a new and different business area with its own resources, as well as implement the strategy of unrelated diversification with strategic collaborations, mergers and acquisitions with other local and international companies.

3.3. Outside Strategic Growth and Strategic Partnerships

3.3.1. Outsourcing

Outsourcing can be defined as the start of procuring an activity and / or process produced by the company from someone else and / or the enterprise. In other words, it is the opposite of vertical integration. Today's competitive business life forces companies to focus on what they do best and to operate in a more flexible structure by outsourcing other activities from those who do the best. In addition to flexibility, companies aim to increase quality and productivity with outsourcing. Studies have found that outsourcing has an effect on reducing costs and increasing capacity and quality (Kelley, 1995). Other advantages of outsourcing can be listed as accessing up-to-date information that would be costly for the company to acquire itself, increasing the speed of the company in providing services and products to the customer, and simplifying the organizational structure. Outsourcing is a critical strategic decision for companies, and if this decision is taken and implemented without good thought, outsourcing can cause more harm than good. These damages can be listed as security, infringement of intellectual property rights, high risks in case of failure and affecting all processes and / or activities (Quadant, 2012). It is also emphasized that firms will increasingly continue to outsource (Fitzpatrick & DilLullo, 2007).

For a healthy outsourcing process, companies must first determine their core competencies that create value. It is very important that these competencies are not outsourced because these competencies are the factors that make the company successful in the market and the life of the company can be seriously endangered if these competencies are lost. Companies can outsource activities and / or processes that do not provide them with competitive advantage and do not have critical importance in their value creation processes. Determining the business or business unit from which the activity or service will be taken is also important for the process. In this determination, care should be taken to ensure that the business or business unit from which the activity or service will be received is compatible and reliable with the company. Writing the agreements haphazardly and carelessly can cause difficulties for all parties involved in the long term if problems arise. Existing personnel may lose their loyalty to the company in outsourcing, so this process should be explained to the human resource carefully. Another point to note is that in some cases, managers can lose control over the activities and / or processes obtained through outsourcing. Even if the activity is outsourced, control is important as it affects the firm's value creation process. Outsourcing can sometimes increase costs. Detailed preparation of hidden costs is important. The cases and ways of outsourcing cessation should also be considered from the very beginning (Wheelen & Hunger, 2012).

3.3.2. Strategic Collaborations

In order to cope with the increasing competition and uncertainty, businesses tend to establish strategic partnerships and establish new structures (Uçanok, Bakanay, & Milli, 2008). Strategic collaborations can be defined as long-term cooperation agreements created by one or more businesses or business units to create common value (Inkpen & TSang, 2007). Collaborations have become an ordinary reality of today's world. Creating and managing collaborations is a skill learned over time for companies. Studies show that as the firm's collaboration experience increases, the success rate also increases (Sampson, 2005). As a result, successful companies invest heavily in their collaboration capabilities (MacCormak & Forbath, 2008). There are various reasons for companies or business units to establish strategic cooperation. First of all, companies go to cooperation to acquire and learn new talents. It is observed that collaborations provide great benefits to the company, especially in attracting knowledge or technologies that require expertise to the company (Rothaermel & Boeker, 2008). In addition, strategic partnerships provide companies with many advantages to enter new markets. Setting up a new business in another geographic region or country is costly and risky because of the lack of experience with the variables of that region, such as firm market structure, trade traditions, and political risks. Cooperating with a business operating in that region protects the company from these risks and costs. It is stated that the reason why many managers establish strategic cooperation is that it provides the opportunity to reduce costs in entering new markets (Anslinger & Jenk, 2004). The firm's doing some of its projects on its own can cause high costs. For this reason, strategic alliances can also reduce the financial risks in large investments (Yin & Shanley, 2008). Collaborations also provide advantage to companies in accessing the resources and skills needed while entering international markets. By cooperating with a local firm, the firm can access local resources and capabilities at lower cost (Lu & Beamish, 2001).

There are many different types of cooperation. Joint service agreements can be defined as partnerships where similar companies in similar industries pool their resources to create value that would be too costly to develop alone. It is possible to encounter such formations especially in high technology works. The bonds of such collaborations are not very strong, and partners do not have to be very close (Wheelen & Hunger, 2012). Joint venture can be defined as "the establishment of an independent business that is formed by two or more independent businesses for common strategic purposes, each member maintains their identity / autonomy, but gives ownership, operational responsibilities, financial risks and rewards to each member" (Lynch, 1989, s. 7). In other words, in joint ventures, each company establishes a joint company by sharing their basic competencies, but they do not lose their legal identity. It is usually set up to take advantage of opportunities that require the skills of more than one partner. For example, while one company shares its distribution channels talent, the other may participate in a joint venture with its technological competence. Joint ventures are established when companies do not want to lose their autonomous identity and do not need a permanent cooperation. Joint ventures are created to create benefits for each partner by temporarily combining the strengths of all partners. It is a useful cooperation model in overcoming financial, political and legal obstacles, risks and costs, especially when opening to international markets (Blodgett, 1992).

Disadvantages of joint ventures include loss of control, lower profits, the possibility of partner conflict, one of the partners trying to dominate, and the possible transfer of technological advantage to the partner. License agreements are also agreements in which a firm grants various rights to another firm in a different country regarding its activities, that is, licenses on certain subjects. These rights may include manufacturing and / or selling a product. In return for this license, the licensee pays a certain price to the licensing company in return for technical experience. License agreements are a useful model, especially in cases where well-known brands have difficulty entering another country for various reasons. At the same time, this strategy becomes important if the country makes it difficult or impossible to invest. However, it runs the risk of bringing the competence of the licensee to a point where it can compete with the licensing company. Therefore, a firm should never license its core competence, even for a short time (Wheelen & Hunger, 2012). Value chain agreements are the establishment of a strong and close cooperation of an enterprise or business unit with its supplier or distributor in order to create mutual benefit. For example, some companies in the automotive sector decide to work with fewer suppliers, develop closer relationships with these suppliers and include them in their own product development processes. The activities carried out within the company's own structure can then be transferred to suppliers specialized in these activities. Research has shown that such relationships are more beneficial and profitable than short-term supplier relationships (Andrews, 1995).

All types of strategic cooperation contain uncertainty. It is important to reach consensus on many elements at the beginning of the cooperation, but many issues may arise later in the cooperation. The main reason for disagreements in collaborations is the possibility that partners may become rivals, now or in the future. Here, too, the key point is to know how to maintain the firm's core competence while establishing a partnership. For strategic alliances to create value for each partner, it is important that each partner has and shares a clear strategic goal. Combining cooperation with the strategy of each partner and creating mutual value for all partners ensures healthy cooperation. In this context, finding and selecting partners whose goals are compatible and complement each other will also increase the chances of success in cooperation. Identifying potential partnership risks in advance and taking them into consideration when cooperation is established can also prevent future problems. Defining the roles and responsibilities of each partner will also ensure that all partners can specialize in their best work and generate benefits. Implementing in-house practices that encourage cooperation in order to minimize the differences in corporate cultures and ensure harmony will also enable the creation of the highest level of value from cooperation. Disagreements between partners can also be minimized by clarifying targets and avoiding direct competition in the market. In an international cooperation, it is critical that those who lead it have comprehensive cross-cultural knowledge. Long-term thinking is a useful method of minimizing short-term conflicts. Balancing unsuccessful projects with successful projects by developing more than one joint project will also prevent the relationship between partners from wearing down. It will be useful to develop a common control mechanism, to build trust and to get projects on target. The willingness to renegotiate cooperation when it comes to environmental changes and new opportunities is another feature of successful collaborations. Agreeing on an exit strategy as to how to end the partners' goals or if the cooperation fails will also contribute to the healthy progress of the cooperation. (Gomess-Casseres, 1998, Inkpen & Li, 1999).

3.3.3. Mergers and Acquisition Strategies

Merger can be defined as the merger of two companies into a single legal entity with a common vision, mission and goals. In other words, two or more independent businesses operating as an independent new business under a new name by terminating their old identity and legal entities and combining all their assets and capabilities are defined as a merger (Ülgen & Mirze, 20010, p. 311). Company A and B merge to form company C. The legal and economic assets of company A and B are now in company C. Mergers are usually between companies of similar size and are perceived as "friendly". As a different form of merger, purchasing strategy is to buy one business by another. Firms can be of different scales and characteristics in purchasing. As a result of the acquisition, while the legal and economic personality of the company that bought it continues, the legal and economic personality of the purchased company comes to an end (Müftüoğlu, 1999). Purchases can be friendly or unfriendly. The unfriendly purchase is called seizing. The desire to grow financially is shown as the most important reason for company mergers and acquisitions. In addition, businesses want to create a synergy effect with these strategies. Entering new markets more easily, reducing production costs, accessing new technologies more easily, reaching new product development information faster, and mitigating the impact of legal trade barriers are some examples to be given in this regard (Koçel, 2003). Synergy can occur due to reasons such as lower costs, higher earnings, lower borrowing capacity, and increased market power with the merger of more than one company. Among the characteristics of the enterprises that make successful mergers and acquisitions, the strategic goals for the company are clearly defined, they enter into cooperation activities that will only serve these goals, they manage their activities quickly, effectively and with the least stress for each partner involved and integrating these skills into their daily operations (Frick & Torres, 2002). The reasons for the failure of mergers and acquisitions include decreased productivity, failure to achieve the desired financial performance, incompatibility of company cultures, loss of qualified personnel, incompatibility of management styles, inability to manage change and poor understanding of targets (Davenport, 2002).

3.4. Getting into international markets

In today's business world, it is not enough for companies to be limited to local markets only. Doing business in international markets is also among the goals of new and small businesses. Expansion into international markets also has a positive effect on profitability (Kocourek, Chung, and McKenna, 2000). There are many options that a company can use to open up to international markets, ranging from export to buying a foreign company. Exporting is the selling of products and / or services produced in the company's own country to other countries. With export, companies can minimize the risk and gain experience in international activities. Starting the internationalization process with export is a recommended option especially for new and small businesses. Thanks to today's advanced communication technologies such as the Internet, the risks and costs of exports are minimized, making exports a popular option for new and small businesses. In addition to exports, the license agreements described above are also used as a method to operate in international markets. A company that wants to open up to foreign markets can enter the market by establishing a joint venture with a local business in that market, thus reducing the risks of entering the new market with the support of the local company. Company mergers and acquisitions can also be made to enter foreign markets. Market entry can be achieved by purchasing a company that is already operating in that market. Although it is more costly and risky, companies may prefer to invest directly in foreign markets. In such a strategy, firms build their production and distribution systems in the foreign country from scratch with their own resources without collaborating with another firm. If the company has a high level of technology, strong international market experience and a wide variety of product lines, such an investment may be appropriate. However, it is worth noting that such an investment is very complex, risky and costly. Its biggest advantage is that it provides freedom to the company in business processes and activities such as supplier and workforce selection, production and distribution systems design (Brouthers & Brouthers, 2000). Companies can also open up to international markets by sharing production, that is, by combining a company with a more advanced technology and competencies in the developed country and a company operating in a developing country where labor and other resources are cheaper. This is also called outsourcing. Turnkey projects are also contracts for the construction of operating facilities, usually for a fee. Facilities are transferred to the host country or firm when they are completed. Multinational companies generally carry out turnkey operations. One type of turnkey projects is the build-operate-transfer model. Instead of delivering the facility immediately after the construction is completed, the company that made the investment operates this business until it earns its investment. Then the owner of the project transfers it to the business. A large company operating all over the world has management experience. It is possible to share this experience with other businesses for a certain fee through management contracts. Management agreements provide tools that enable a company to send some of its staff to that firm for a fee and for a specified period of time to assist a firm in a host country. The contracts ensure that the firm continues to earn some income from its investments and until the information transfer to the local firm (Brouthers ve Hennart, 2007).

3.5. Franchising as a Common Growth Strategy

The Turkish equivalent of this type of cooperation, which is settled in the everyday language as Franchising, can be expressed as "concession / privilege". The exact meaning of the word franchise is concession and franchising includes the whole system of granting and receiving concessions (Gülnur & Anıl, 2017). In this section, the word Franchising will be referred to as "concession system".

The National Franchising Association (UFRAD) defined the concept of concession as "It is the whole of the long-term and continuous business relationships that arise from the privilege of the party holding the concession right of a product or service to the second party to carry out commercial business by providing information and support on the management and organization of the business within a certain period, conditions and limitations." (UFRAD, 2001-2002). Under the concession agreement, a firm gives another firm the right to do business using its name and production system. The franchisee pays the franchiser an initial fee and then pays a percentage of its sales as royalty (Wheelen & Hunger, 2012). Concession is a form of licensing agreement that offers the franchiser the opportunity to do business to the franchisee in a predefined manner (Rosado-Serrano, Dikova & Paul, 2018). New and small businesses have been using this method to grow for a long time (Dant & Grünhagen, 2014). It is one of the most popular methods companies use to grow in both local and international markets. The concession agreement is a legal agreement that determines the rights and responsibilities of both parties. As can be understood from its definition, there are two parties in the concession system, namely franchiser and franchisee. Franchiser means the party that has a product, service or knowledge, a proven and successful brand / name belonging to them and gives the right to sell, distribute or operate them for a certain price. Franchisee means the party that receives the franchiser’s trade name / brand, knowledge, techniques and methods of business, its system and the use of other industrial / intellectual property rights for a fee. (Gülnur & Anıl, 2017, s. 40).

For the healthy functioning of the concession method, there are certain factors that Franchiser and Franchisee should pay attention. Long-term consideration of the cooperation relationship enhances the quality of the concession process as it shows that for both parties this cooperation is more important than their individual activities. It is also important to set the power balance well. Although the conditions are determined by the contract, it is important not to use this power in a way that exploits the other side as much as the power arising from the rights of both sides. Behaving in a way that preserves the relationship between them in their decisions and activities will contribute to the good balance of power. Additionally, when changes occur, both parties must adapt their behavior to the new conditions to maintain the relationship despite the contractual provisions. Another factor affecting the success of the concession method is that both parties know their expectations from each other and agree on these expectations for the long term. (Kaufmann & Dant, 1992).