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The Process of Business Expansion into New Regions or Countries.
The Process of Expansion of the Business into a New Region or Country.
The aim of all businesses is primarily making profits. The need for expansion is one of the callings to making profits. This essay chooses to investigate the process by which businesses choose to expand. The resources they invest in expansion and their expectations in the expansion efforts. Therefore the discussions here will be all aimed at clearly identifying the process by which businesses expand into new regions and countries.
(Mognetti. 2003) Summary:
The core value of a business is growth (expansion). The environment being a rapidly changing one and a highly competitive, this has been made harder to achieve. Businesses have been entering into high-risk and high rewarding mergers. But the time is ripe for businesses to look into their own portfolios and find how best they can achieve expansion.
Since we have identified the motive for expansion, then we ought to ask our selves the following questions. Why do we have less businesses expanding into new regions? Why do we only have multi national corporations expanding to new territories? The answer to these two questions should more or less be the same. But interestingly enough a number of businesses will hold different views over the same. Smaller business will sight that the lack of capital is what makes them not explore new regions. Whereas this is true, their counterparts will always argue that capital is not a limiting factor in seeking growth and expansion.
Perhaps these two groups are both right, we will need to shed more light on the fears to expansion and the spoils for expansion. Indeed if a venture is not profitable the odds of pursuing it are almost zero. It is important to not that one can only know the risks of expansion, if first they look into the existing market trends and a bit of research on how to enter the market.
New regions will normally have their bottlenecks. Their might be rules that will make the entry into a market very difficult at one point in time. Let us consider the fast food industry in Kenya. For quite some time this industry had been dominated by more or less one company Innscor.............
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