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Why expand? The old adage "grow or die"
clearly no longer applies in today's hyper-competitive business
world. As many companies die that attempt to expand as those that
resist change. How, then, are you to know whether you should expand
your company? Or, how best to plan and execute an expansion strategy?
Source Companies, LLC has many years of practical
experience in assisting family owned and other closely-held, medium-sized
businesses in evaluating their expansion options, capitalizing their
expansion plans, aligning people development and training to successfully
achieve expansion goals, designing analytical tools to measure management's
effectiveness at growing value for shareholders, and providing periodic
oversight to monitor against future value erosion risks.
An Overview of Expansion Theory
Theoretically, companies should expand only if growth
can help achieve one or more of the following objectives:
- Reduce vulnerability to seasonal or economic cycles.
- Protect market share.
- Prevent competitors from gaining market share.
- Ensure continued access to suppliers.
- Take greater advantage of distribution channels.
- Increase the long-term value of the company.
And there are many avenues for business expansion
which include: diversified or undiversified, internal or external,
calculated or opportunistic, offensive or defensive, or some combination.
How do you know which route will lead to your company's success?
Obviously, the stakes are high. As we enter the twenty-first
century, there is less margin for error than in the past and businesses
often face better capitalized competitors. Successful expansion
has become more critically dependent than ever on a sound growth
process.
For more information on expanding your company click
here.
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