Question

Which 6 pertinent capacity questions will you address that will be useful as part of the expansion strategy under discussion and why?

Answer 1

6 pertinent capacity questions to be addressed that will be useful as part of the expansion strategy under discussion can be given as stated below. It is important to address these questions as it will be help in formulating the clear strategy for planning and taking the required steps for the expansion of the strategy. These questions provide answer for the relevance of the reasons for the expansion and the goals to be achieved from investing additional resources. The road ahead for the growth of the business and the changes required in the company as a result of expansion or increase in capabilities are planned with the help of following assessments.

1. What is the current position of the business in terms of profitability, market share and current market growth in the existing markets ? Is company successful in meeting the customer demand satisfactorily or it requires improvements and changes ?

2. What are the emerging trends in terms of customer needs, market practices, economic and global conditions, competition growth and what are the business plans of the company to address the future challenges ?

3. Is it possible to achieve continual growth based on the current capacity and operations in the coming years ? If not, what is required in terms of improving the business performance and capabilities and maintaining competitive edge in the industry?

4. What are the additional resources in terms of finance, technology, human resources and expertise required for addressing the future challenges in the business and how can company organize them for future growth and operations of the business ?

5. Which are the most profitable areas for growth in terms of products and categories, geographical areas and operational practices and what kind of strategy the company should adopt for expansion like merger and acquisition, strategic alliances or joint ventures or internal assets growth ?

6. How can the company sustain its growth practices of expansion and existing business competitively in long term ? What kind of skills, resources, changes in the company are required at different levels for maintaining growth and managing its operations efficiently?