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Deciding to Expand an Organization

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When making a decision to expand an organization, what are the first criteria you would use to determine whether to expand? Justify your approach.

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Solution Summary

This solution explains the first criteria that would be used to determine if a business should expand, and provides full justification for the approach used.

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When companies decide to expand, a few primary decisions should determine the extent and overall possibility of a successful expansion. Management should conduct a thorough expansion analysis that includes certain elements. The first element is an analysis of the market in which the company wishes to expand. Management would want to ask if the market is viable in that area, and examine the current market share. If the current market share in the same area is dominated by a competitor that is larger and has access to lower ...

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