Business Expansion - Revision history

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 == What is Business Expansion? ==
-'''Business Expansion''' is a stage where the business reaches the point of growth and seeks out additional options to generate more profit. Different forms of business expansion include an opening in another location, adding sales employees, increasing marketing, adding franchisees, forming an alliance, offering new products or services, entering new markets, merging with or acquiring another business, expanding globally and expanding through the internet.<ref>[http://www.attractcapital.com/business-expansion.html Defining Business Expansion -Attract Capital]</ref>
+'''[[Business]] Expansion''' is a stage where the business reaches the point of growth and seeks out additional options to generate more profit. Different forms of business expansion include an opening in another location, adding sales employees, increasing marketing, adding franchisees, forming an alliance, offering new products or services, entering new markets, merging with or acquiring another business, expanding globally and expanding through the internet.<ref>[http://www.attractcapital.com/business-expansion.html Defining Business Expansion -Attract Capital]</ref>
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 == See Also ==
-<div style="column-count:2;-moz-column-count:3;-webkit-column-count:3">
+*Scale-up: This refers to increasing a business's capacity to handle a growing amount of work or sales. Scaling up often involves investments in production, human resources, and infrastructure to accommodate increased demand.
 *[[Organic Growth]]
 == References ==

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 **Conglomerate Diversification: When an organization expands itself into different areas, whether related or unrelated to its core business is called as a conglomerate diversification. Simply, conglomerate diversification is when the firm acquires or develops the product and services that may or may not be related to the existing range of product and services.
 *Expansion through Integration: The Expansion through Integration means combining one or more present operation of the business with no change in the customer groups. This combination can be done through a value chain. The value chain comprises of interlinked activities performed by an organization right from the procurement of raw materials to the marketing of finished goods. Thus, a firm may move up or down the value chain to focus more comprehensively on the needs of the existing customers. The expansion through integration widens the scope of the business and thus considered as the grand expansion strategy. There are two ways of integration:
-**[[Vertical integration]]: The vertical integration is of two types: forward and backward. When an organization moves close to the ultimate customers, i.e. facilitate the sale of the finished goods is said to have made a forward integration.
+**[[Vertical Integration]]: The vertical integration is of two types: forward and backward. When an organization moves close to the ultimate customers, i.e. facilitate the sale of the finished goods is said to have made a forward integration.
 **[[Horizontal Integration]]: A firm is said to have made a horizontal integration when it takes over the same kind of product with similar marketing and production levels.
 *[[Expansion through Cooperation]]: The Expansion through Cooperation is a strategy followed when an organization enters into a mutual agreement with the competitor to carry out the business operations and compete with one another at the same time, with the objective to expand the market potential. The expansion through cooperation can be done by following any of the strategies as explained below:

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 **Conglomerate Diversification: When an organization expands itself into different areas, whether related or unrelated to its core business is called as a conglomerate diversification. Simply, conglomerate diversification is when the firm acquires or develops the product and services that may or may not be related to the existing range of product and services.
 *Expansion through Integration: The Expansion through Integration means combining one or more present operation of the business with no change in the customer groups. This combination can be done through a value chain. The value chain comprises of interlinked activities performed by an organization right from the procurement of raw materials to the marketing of finished goods. Thus, a firm may move up or down the value chain to focus more comprehensively on the needs of the existing customers. The expansion through integration widens the scope of the business and thus considered as the grand expansion strategy. There are two ways of integration:
-**Vertical integration: The vertical integration is of two types: forward and backward. When an organization moves close to the ultimate customers, i.e. facilitate the sale of the finished goods is said to have made a forward integration.
+**[[Vertical integration]]: The vertical integration is of two types: forward and backward. When an organization moves close to the ultimate customers, i.e. facilitate the sale of the finished goods is said to have made a forward integration.
 **[[Horizontal Integration]]: A firm is said to have made a horizontal integration when it takes over the same kind of product with similar marketing and production levels.
-*Expansion through Cooperation: The Expansion through Cooperation is a strategy followed when an organization enters into a mutual agreement with the competitor to carry out the business operations and compete with one another at the same time, with the objective to expand the market potential. The expansion through cooperation can be done by following any of the strategies as explained below:
+*[[Expansion through Cooperation]]: The Expansion through Cooperation is a strategy followed when an organization enters into a mutual agreement with the competitor to carry out the business operations and compete with one another at the same time, with the objective to expand the market potential. The expansion through cooperation can be done by following any of the strategies as explained below:
 **[[Merger]]: The merger is the combination of two or more firms wherein one acquires the assets and liabilities of the other in the exchange of cash or shares, or both the organizations get dissolved, and a new organization came into the existence. The firm that acquires another is said to have made an acquisition, whereas, for the other firm that gets acquired, it is a merger.
-**Takeover: Takeover strategy is the other method of expansion through cooperation. In this, one firm acquires the other in such a way, that it becomes responsible for all the acquired firm’s operations. The takeovers can either be friendly or hostile. In the former, both the companies agree for a takeover and feels it is beneficial for both. However, in the case of a hostile takeover, a firm try to take on the operations of the other firm forcefully either known or unknown to the target firm.
+**[[Takeover]]: Takeover strategy is the other method of expansion through cooperation. In this, one firm acquires the other in such a way, that it becomes responsible for all the acquired firm’s operations. The takeovers can either be friendly or hostile. In the former, both the companies agree for a takeover and feels it is beneficial for both. However, in the case of a hostile takeover, a firm try to take on the operations of the other firm forcefully either known or unknown to the target firm.
 **[[Joint Venture]]: Under the joint venture, both the firms agree to combine and carry out the business operations jointly. The joint venture is generally done, to capitalize the strengths of both the firms. The joint ventures are usually temporary; that lasts till the particular task is accomplished.
 **[[Strategic Alliance]]: Under this strategy of expansion through cooperation, the firms unite or combine to perform a set of business operations, but function independently and pursue the individualized goals. Generally, the strategic alliance is formed to capitalize on the expertise in technology or manpower of either of the firm.
-*Expansion through Internationalization: The Expansion through Internationalization is the strategy followed by an organization when it aims to expand beyond the national market. The need for the Expansion through Internationalization arises when an organization has explored all the potential to expand domestically and look for the expansion opportunities beyond the national boundaries. But however, going global is not an easy task, the organization has to comply with the stringent benchmarks of price, quality and timely delivery of goods and services, that may vary from country to country. The expansion through internationalization could be done by adopting either of the following strategies:
+*[[Expansion through Internationalization]]: The Expansion through Internationalization is the strategy followed by an organization when it aims to expand beyond the national market. The need for the Expansion through Internationalization arises when an organization has explored all the potential to expand domestically and look for the expansion opportunities beyond the national boundaries. But however, going global is not an easy task, the organization has to comply with the stringent benchmarks of price, quality and timely delivery of goods and services, that may vary from country to country. The expansion through internationalization could be done by adopting either of the following strategies:
 **Multidomestic Strategy: Under this strategy, the multi-domestic firms offer the customized products and services that match the local conditions operating in the foreign markets.
 **The global firms rely on low-cost structure and offer those products and services to the selected foreign markets in which they have the expertise. Thus, a standardized product or service is offered to the selected countries around the world.

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 == See Also ==
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+*[[Business]]
 </div>

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 == See Also ==
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-[[Business]]<br />
 </div>
 == References ==

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 [[IT Operations (Information Technology Operations)]]<br />
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 == References ==

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 Each strategy, of course, implies additional alternatives some of which may be quite risky. By way of an example, the first choice, to sell more of the same, may involve one or a combination of the following:
-*regional expansion of outlets
+- regional expansion of outlets<br />
-*significant expansion of production facilities
+- significant expansion of production facilities<br />
-*vertical integration whereby more of the product is made in-house
+- vertical integration whereby more of the product is made in-house<br />
-*revamping the distribution system, and more.
+- revamping the distribution system, and more.<br />
 In essence, planned expansion—particularly one based on more complex strategies—is essentially the same as starting a business from scratch with the exception that a running business provides the owner with a minimum base from which to start
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 *Establishment of business agreements with distributorships and/or dealerships
 *Pursuing new marketing routes (such as catalogs)
-*Joining industry cooperatives to achieve savings in certain common areas of operation, including advertising and purchasing
+*Joining industry cooperatives to achieve savings in certain common areas of operation, including advertising and purchasing public stock offerings
 *Employee stock ownership plans
 Of course, none of the above options should be pursued until the business's ownership has laid the necessary groundwork. "The growth process begins with an honest assessment of strengths and weaknesses," wrote Erick Koshner in Human Resource Planning. "Given those skills, the organization then identifies the key markets or types of future market opportunities the company is likely to capture. This, of course, raises another set of issues about how to best develop the structures and processes that will further enhance the organization's core capabilities. Once these structures and processes are identified and the long range planning completed, the business has a view of where it will be in three to five years and agreement on key strategies for building future business."