The process of Business expansion (Essay Sample)

Process of Business Expansion Student Name University Name Course Name and Number Instructor Name Date of Submission To most businesses, the ultimate goal not only to make profits, but also to be a major player in the industry that it operates. Thus, as a business works to clinch a niche in the market, it also has constantly to work for its growth and excellence. Consequently, expanding its operations in other markets or regions is inevitable if a business wants to grow in this competitive world of business (Ansoff, 1965). In its definition, business expansion can be referred to a business strategy through which a business can obtain growth by increasing its operations and accessibility to customers by opening more outlets in new markets, regions or countries. Inspired by globalization and reduced international trade barriers, businesses are venturing into new regions or countries while aiming at business growth or expansion and diversification of their business activities. However, business expansion may involve complex operations that might pose a challenge to some businesses. Therefore, it is essential for a business to keenly assess and understand the process of business expansion so as accomplish the goals they set to achieve through expansion (Ansoff, 1965). The process of business operation would involve the following steps; Assessment and evaluation of the business itself. This stage involves a keen evaluation of the business, its operations, size as well as financial position and performance so as to establish whether implementing a business expansion strategy will be viable for the business. It is in this step that a business will assess whether it will manage to finance the expansion internally or whether external financing is required. Additionally, a business will establish how to manage the new business outlet (s) and whether it will lead to part of the existing management team to head the new branches. As a result, this analysis will assist a business to check on the viability of business expansion strategy they are looking forward to (Ansoff, 1965). Second, the process of business expansion involves an extensive market research and industrial analysis on the region or country that a business wishes to venture. This step involves assessing the clientele base that the market is likely to offer, infrastructural development of the region, the legal requirements for foreign investors in the country, availability of raw materials in case of a manufacturing business, as well as the availability and cost of labor. Further, a business ought to assess on the risks that will be involved and evaluate on the ease of executing an exit strategy if it plans to operate for a defined period (Laney, 2012). Take the example of a country like Qatar that over the past few decades has experienced tremendous economic growth, business people would like to benefit from the growth by venturing into the market. Currently, the country's population stands at around 2.2 million people with only an approximate of 300,000 citizens while the rest are foreigners. Consequently, the country has the highest ratio of non-citizens to citizens in the world. However, despite different lifestyles that foreigners may bring, everyone living in the country is bound by the country's law is deeply rooted on the Islamic Sharia law. Therefore, if a company in the alcohol business wants to expand its business to Qatar, it has to analyze the viability of the strategy. It follows the understanding that consumption of alcohol is restricted a bit, with a person's employer being bestowed with the responsibility of issuing him or her with a permit to buy alcohol for consumption at home (Economy Watch, 2010). Further, after conducting a market research and establishing whether business expansion is viable, the other step would involve developing a business plan that will assist in setting out of the new business. The business will require establishing whether the expansion will involve the whole business in terms of products or services or just one product line. In this stage, the business will come up with the goals that it wishes to accomplish; business growth and business diversification. Additionally, the business will be required to come up with a production plan and management plan for a new venture and also determine and obtain the required resources to assist it in its strategy (Luo and Tung, 2007). Consequently, the business can now implement the expansion str...