expansion or growth in business organization simply means an increase in size and capacity. It also involves the diversification of products, machinery and package better for workers, good network, reducing downtime, and reduce waste, manpower disciplined, less the incident report, and profit maximization, cost saving etc issue of expansion or growth is a mirage without making human efforts, which range from operating machines in manufacturing organizations, decision-making, and a source of raw materials and marketing finished products movement of goods. Any organization should be adopted expansion or growth in its business activities first put the interests of the workforce have a full heart because they are the focus of expansion and growth. Without the expansion / growth and organizations stand in danger of collapse whenever placed in competitions. Expansion / growth makes the organization stands firmly by adverse conditions is also used proceeds from other business activities as a supplement to the appointment of the troubled company back on track.
story can be told of two soap manufacturing industries in Aba, Abia state Nigeria; a fair Associates International (IEA) and Patterson Zochonis me, (PZ), which began producing soap of the same year. The first, which does not have a policy of expansion in their programs were having a hard time to stand on her feet while the latter Messenger expansion has become a household name in Africa with branches and warehouses scattered all over the continent. Because of this lack of vision on expansion and growth in most of the organizations that have been the cause of some of these business organizations have become extinct and dying.
keys to expansion / growth
1. good policy / decision-making: with the organization to take a good policy / decision-usually stands taste of times, because of the kind of policies or decisions initiated by the owners in the day to day running of the work. If the organization embraces the wrong policy or decision in their business activities, its collapse is imminent.
2. Good planning: any organization does not plan well must crumble. This involves actions to take and when to take and strategies that rely on access to the target path. Organization with the way poor planning can never grow because it lacks any technical how to achieve the desired goal.
3. strong financial base: This is one of the most essential factors that promote growth and expansion in business organization. Without a strong financial base, and the company's policies, visions, and aspirations can not be actualized for about eighty percent of the actions to be taken based solely on this. Business organizations should seek to make money available in accordance with its goals and objectives with respect to the expansionist policy.
4. Research: Without the search, any organization will stand. It involves an insight into the world of possibilities and impossibilities because they affect the organizational progress, growth rate, and the obstacles, products, market requirements, etc. It is a mirror that looks at the future of each organization on the basis of data available from the day -to-day running of the business . As it turns out there is a trend in the company, which operates in terms of total output, and demand for products and consumption of the product.
5. Accountability: any organization that does not accept the right accountability in their daily activities are doomed. Proper accountability disclose the financial condition of any organization.It it is from this that the company know whether it is gaining or losing thus develop plans on how to check the anomalies. It also reveals where the company must intensify efforts to maximize profits and reduce losses.
Things to watch for in expanding the business organization and / growth
i. Motivation: Every stimulate the entire labor force organization if he planned to embark on expansion. Each expansion must begin True / growth of the motives of the workforce as a whole because it brings out the best of them and make them work more efficiently. Organization without the motivation of the entire workforce can not be proud of expansion because it is the mastermind behind any move to achieve the highest levels.
II. Product diversification: organization with a lot of goods and services in high demand thanks to its name is undoubtedly expand. This is very important, and the profits will be coming in various fields, which enhances stability.
III. Network / versatility: This is one of the things to watch. It tells about the sites, interventions and activities your worldwide. Without networking, and the policy of expansion of the company is never complete.
IV. Affiliations: organization has had a major expansion program typically affiliates with another with this policy, so they can share ideas and others to achieve the highest levels.
against the annual accounts: This shows the profits and losses, and access to the company and so is a measure to ensure the financial strength of the organization.
advantages of expansion / growth
a. It creates popular respect and recognition among business organizations.
b. It increases profits when used properly.
c. The outcome of diverse business activities can be used during adverse conditions.
d. Business organizations with the expansion of programs usually have a strong stable foundation when fully implemented.
e. The development achieved easily, as society is flooded with innovations and basic infrastructure, which works to improve the standard of living.
disadvantages of expansion / growth
a. It is very expensive.
b. It lends itself to embezzlement if it is not monitored properly.
c. Delays in decision-making in order to consult with all concerned authorities time.
d. It is very difficult to manage as they are scattered in various units in different locations.
e. Some managers from other units trying to be independent, which creates competition among the top positions in the organization.
regardless of the disadvantages of expansion, should a business organization seeking to embark on that (expansion) because it is a platform for a solid base and stability.
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