Question

1. pretend you are a consultant and you are paid to advise a company on an expansion project. Which would you prefer? And why?

Answer 1

The companies ultimate goal is not to earn profit but to capitalise this profits to expand business.

whent the company is regularly earning profit with the existing business. It distributes a percentage of earning as dividend and certain percentage of earning is kept has retained earning to expand its business.

Methods to expand business

1. Expansion can be done into existing products and services by selling more and more to the existing customers.
2. Expansion can be done by selling existing products and services to new areas or territories which has not been reached yet. locations in different geographical areas such as across the globe.
3. By adding new products and services to the product mix is also an alternative for business expansion.
4. Acquisition and merger with other companies: one of the most fastest and traditional route to grow and expand business is acquisition and merger with others. This method helps the business to expand its business size and strength and it also reduces the competition within the market.
5. The sales and marketing strategies can be enhanced by the organisation to increase the marketing efforts to target specific customers based on demographic features such as age sex location or their interest or cultural values.
6. Use of new sales and delivery channels the business can expand their sales and delivery throughout the globe by using internet as a source of expansion.
7. It can be done with the help of advertising and use of search engine optimisation (SEO) technique to rank its product at the top of the others.