CanGo is looking at ways to grow its business. How should they approach the decision on how to do it?
CanGo must do the marginal benefit and marginal cost analysis to approach any decision that they make regarding venturing into new business territory. CanGo has been in the business of books, CD’s and other related business and these are matured business and people today are identifying with new lifestyle and newer ways in the entertainment market. It is imperative for CanGo to keep pace with these new business opportunities and thus cater to the evolving market. CanGo management team wants to develop new ventures and wants to still run/implement it using existing in house resources. This is surely going to be a challenge as this will involve trade-off between their existing business operation and resources needed for new ventures. They cannot really fund all of the ideas they have for the growth. They would have to prioritize among the newer ideas. Also, there are limited employee’s resources and anytime they want to hire new employees, it would cost them. Company can surely look for funding e.g. raising an IPO, bring efficiency in their operation and also prioritizing their existing business operation so as to free some of the employees for working on their new venture.
CanGo should start with doing a self-analysis on it’s existing business systems trying to identify any areas when that can improve efficiencies. A part of CanGo evaluation process should include calculations to determine the true value of any new business venture to the organization. Will enough revenue be generated to justify the cost of implementing? What other projects may suffer do to resources being shifted from one to another? Answering these types of questions will help set the priority for the limit technical resources available. With this understanding an Managers will have to pull and move resources between projects as needed to provide to project support coverage. This may not be an ideal situation be it has been the reality for many people working today in a matrix work environment.
CanGo can’t begin to move forward until they know where they presently stand. A self-analysis takes some time to access the current state of the company and where it intends to go. The key is to have enough foresight to determine if the prospective business venture is doable, financially speaking. It is one thing to know that the venture will create profit, but it is something totally different to determine if funds are available to get CanGo to where they want to be. Something always lacks when focus is shifted. They should definitely take their time rather than make rash decisions.
Brainstorming would be a great approach for CanGo to take when deciding how to grow its business. Brainstorming, especially group brainstorming is often very productive yet for some reason under rated. I for one like to openly discuss new ideas with others. This allows you the opportunity to bounce ideas off of one another. For example, I may believe that CanGo can grow its business through expanded marketing, but not really have an idea of what form of marketing might generate the best results, while my one of my team members that I am brainstorming with may have some excellent advise and experience in marketing. I suppose this reiterates the old saying that “Two heads are better than one”. They can look at different ways to advertise. A great way is online. They can make a Facebook page or they get on GroupOn. Both of these are effective ways to get their name out there. They can also look to see if they can open up any other locations, preferably in the city where they will get the most attention. All successful small business startups eventually face the issue of handling business expansion or growth. Business expansion is a stage of a company’s life that is fraught with both opportunities and perils. On the one hand, business growth often carries with it a corresponding increase in financial fortunes for owners and employees alike.
Small businesses can expand their operations by pursuing any number of avenues. The most commonplace methods by which small companies increase their business are incremental in character, i.e., increasing product inventory or services rendered without making wholesale changes to facilities or other operational components. But usually, after some period of time, businesses that have the capacity and desire to grow will find that other options should be studied. Business expansion also brings with it increased opportunities for staff members who were a part of the business in its early days. The entrepreneur who recognizes these opportunities and delegates responsibilities appropriately can go far toward satisfying the desires of employees who want to grow in both personal and professional capacities. But small business owners also need to recognize that business growth often triggers the departure of workers who are either unable or unwilling to adjust to the changing business environment. I think that CanGo has limited the resources that they have to expand there business. CanGo needs to do a broader analysis in order to expand. Things such as cross-training, merger, franchising, and another investor. Yes, I concur I believe CanGo has to come up with a cost benefit plan, to see what where they are at and where they need to be or how to get there. This will help them determine in what areas they can expand on also will help them with future growth.
CanGo has been very successful thus far but we are seeing here that they definitely need some organization going on. They need to get goals set and they need to do some analyses of the business operations to see exactly what can be done. They are limited on resources, which makes for a very challenging issue. To me it does not make sense to continue trying to add new ventures or start new ideas because none of these more important things have taken place yet. I also think it is very unfair to put all of this work on Whitney without a pay raise or overtime pay. I realize this means taking from their already little resources but if they want to continue to build the business and make it even more successful they are going to have to do something in either paying current employees overtime or hiring new employees. Maybe it is just me but it seems like Whitney wastes a lot of time on personal issues. She was on the phone with someone when Warren and another co-worker walked in to talk to her. I think before they can do anything they need to determine exactly what each employee does and what they should be doing.