Process of Business Expansion in an Economy Research Paper - 550 Words

Process of Business Expansion in an Economy (Research Paper Sample) Content: PROCESS OF BUSINESS EXPANSION INTO A NEW REGION OR COUNTRYBusiness expansion involves increasing the scale of operations of an enterprise either locally or internationally. However, diversifying these operations to a new region is a critical process which needs a number of procedures to be followed. For instance, opening a new branch of an enterprise into a new region may require the owners to familiarize themselves with legal requirements regarding foreign investment within the new locale of operation.According to a Canadian business network there are five strategies recommended for one opting for business expansion in this new region. First, productivity has to be improved .This comes in some automation process and an improvement in technology together with an additional platform for training employees to fit the new business segment needs. A major streamline in business operations occur which can be seen through elimination of redundancies.Maximization of untapped power through underused resources is advocated as a way of capitalizing opportunities for business development. Therefore, this requires an organization to go for business opportunities that require this idle resource which are in form of capital, labor and land. In addition, the business network does bring out the idea of optimizing the level of distribution. An enterprise will only accommodate market demand by adjusting their distribution system or improving it totally. There can be an effort to merge the distribution sector with the warehousing and also abolish low volume distributors.Furthermore, the business network suggests the need for efficiency in administrative services which are out of distribution of goods and services. Business management tools could help in the administrative side of the business. An enterprise may opt to trim down on planning, controlling, staffing, budgeting and information management as a way of saving time and financial resources. Finally, a fifth strategy recommended is finding new suppliers to help in distribution of goods and services. The business can decide to outsource areas of its operations through making purchases instead of manufacture. This will create room for concentration on what can be done best according to their capability more so in the new locale of operation.According to (Ram, 1998) finding market segments or creating them is the first step of getting out of the "served market trapà ¢Ã¢â€š ¬Ã‚ . This trap is perceived as a blindfold for one to focus only on within and not without of the business. He goes on to give an example of the shoe company giant Nike which enlarged its pond through segmentation. Nike came up with high quality shoes and moved them into the broad consumer marketplace which was evidenced by revenues passed indicating their capture for one third of United States (the athletic footwear market).