Expansion or Growth in Business Organizations
Expansion or growth in the business organization simply means increase in size and capacity. It also implies product diversification, machinery, better package for workers, good network, reduced downtime, reduced waste, disciplined workforce, fewer accident reports, profit maximization, cost savings, etc. The issue of expansion or growth is a mirage without human effort, ranging from operating machines in manufacturing organizations, decision making, movement of goods, source of raw materials and marketing of finished products. Any organization that must embrace expansion or growth in its business activities must first consider the interest of its entire workforce because they are the lynchpin of expansion and growth. Without expansion/growth, organizations risk collapsing every time the competition presents itself. Expansion/growth makes an organization stand strong during adverse conditions, as profits from other business activities are used as a supplement to get the struggling company back on track.
A story can be told of two soap manufacturing companies in Aba, Abia State, Nigeria; namely International Equitable Associates (IEA) and Paterson Zochonis Plc, (PZ), which began soap production the same year. The former, having no expansion policy in its programs, was facing a difficult time getting on its feet, while the latter, an apostle of expansion, had become a household name in Africa with branches and warehouses spread all over the continent. It is because of this lack of visions for expansion and growth in most organizations that has been the reason why some of these business organizations have become extinct and dying.
Keys to Expansion/Growth
1. Good Decision/Policy Making: An organization with good decision/policy making usually resists the taste of the times because of the type of policy or decision taken by its owners in the day-to-day running of the business. If an organization adopts a wrong policy or decision in its business activities, its collapse is imminent.
2. Good Planning: Any organization that does not plan well must collapse. This implies actions to be taken, when to be taken, and strategies to be adopted in the course of reaching the stated objective. An organization with a bad planning method will never be able to grow because it lacks the technical knowledge to achieve the required goal.
3. Solid financial foundation: This is one of the most essential factors that enhances the expansion and growth in the business organization. Without a solid financial foundation, the company’s policies, visions, and aspirations can never be realized because about eighty percent of the actions that need to be taken depend solely on this. Business organizations must strive to have money in compliance with their goals and objectives in relation to their expansion policy.
4. Research: Without research, no organization will survive. It implies a worldview of possibilities and impossibilities, as it affects organizational progress, growth rate, obstacles, products, market demands, etc. It is a mirror in which the future of any organization can be seen based on the data available from the day-to-day business. It also shows a trend in which the company operates in terms of total production, product demand, and product consumption.
5. Responsibility: Any organization that does not take proper responsibility in its day-to-day activities is doomed. Proper accountability reveals the financial status of any organization. It is from this that a company knows whether it is winning or losing, so it makes plans for how to check for anomalies. It also reveals where a company must intensify its efforts to maximize profits and reduce losses.
Aspects to take into account in the expansion/growth of a business organization
Yo. Motivation: Every organization must motivate its entire workforce if it plans to start an expansion. All true expansion/growth must start from motivating the entire workforce, as this brings out the best in them and makes them work more efficiently. An organization without motivation of its entire workforce cannot boast of expansion because they are the brains behind any movement to reach greater heights.
ii. Product Diversification: An organization with a large number of high-demand goods and services credited to its name is undoubtedly expanding. This is very important, as the gains will come in different areas, which improves your stability.
iii. Networks/Versatility: This is one of the things to keep in mind. He talks about locations, participations and his activities around the world. Without networking, a company’s expansion policy is never complete.
IV. Affiliations: An organization that has a strong expansion program will usually affiliate with another with that policy, so they can share ideas, etc. to reach greater heights.
v. Annual accounts: This shows the profits, losses, access, etc. of a company. It is a criterion for determining the financial strength of an organization.
Advantages of Expansion/Growth
A. Creates popularity, respect and recognition among business organizations.
b. It maximizes profits when harnessed properly.
against Income from various business activities can be used during adverse conditions.
d. Enterprise organizations with expansion programs often have strong and stable foundations when fully implemented.
my. Development is easily achieved as society is flooded with basic infrastructure and innovations that improve the standard of living.
Disadvantages of Expansion/Growth
A. It is very expensive.
b. It creates room for confusion if not properly controlled.
against Decision making is delayed at some point to consult all relevant sectors.
d. It is very difficult to manage since the various units are scattered in various places.
my. Some managers in other units try to be independent, which breeds rivalry among the higher levels of the organization.
No matter the disadvantages of expansion, the business organization should strive to start in it (expansion) because it is a platform for a solid and stable foundation.