Business Expansion

A business that has been doing well in its current location may decide to in an attempt to grow. This can be through establishment of the same business in a different region in a country or even expand to a global scale. Such a decision is made when the business owner who has been successful in a to try out new areas with the hope that the business will still do well in this new regions.

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The business will therefore need to make several changes in terms of the new business form that it will undertake in its expansion. The business has to consider employing new workers and even having a new way of thinking in terms of the initial business plan. The business leadership will have a task to come up with a new business plan on how the business will be expanded.

This paper will therefore look at the various areas that the leadership of the business will touch on so that they will ensure a success in the expansion of the business. Among the issues that the leadership must deal with are;

Key business functions to be considered and protected

The vital business functions without which the business cannot operate or remain viable are production and sales. The business upon expansion should therefore ensure that the production rate is sufficient enough to meet the needs of the customers. The business should also make sure that the sales are sufficient to ensure that the goods produced are sold effectively. If these functions are not protected during expansion then the business will suffer seriously in terms of their finances. The business can incur serious losses if the production is high but there are no sales made. Or even when the demand for the products is high and the production system is not in a position to meet the demand (Bax, 2011). There can also be legal implications and penalties to the business incase these issues are not properly managed. This occurs when the goods are not up to standards that have been set or the standards have gone down upon expansion.


Without employees both new and old, the business can not register a success during its expansion. A growing business should therefore have appropriate expansion policies put in place that will motivate the key employees to be part of the expanding business. If no proper strategies are put in place then some of the employees will be triggered to leave. With expansion a business brings an increase in the opportunities, the business in a bid to motivate the current employees they can to them as they take up new employees in the business. When hiring new employees they should be careful to ensure that the old employees do not feel as though they have been replaced rather they should be made to feel as though they have been rewarded by been promoted to new post that have been created from the expansion.

Systems to undergo adjustment

There are various systems within the business that should be considered when expansion is being done. The communication system in the business should be upgraded and made efficient when expanding. Lot of coordination has to be made when the business is undergoing expansion in different regions. This calls for effective communication so that the functions of the business will be synchronized throughout these new regions. The financial system put in place should also be appropriate to meet the new expanded business. It should be effective and transparent so that no losses are attributed to poor financial management. The technology that is put in place should also be appropriate and . This will ensure that the production process is quite reliable and the products are standard since the technology that is used is very effective (Bax, 2011). The general management of the business should be effective. A good management system ensures that the business will be steered well. The management should be one that puts emphasis on the goals that where put when the decision to expand were made. The management should ensure that the objectives are met.

Ethical issues

The business that is set to expand has to set objectives that will enable the business so be conducted in a moral manner. The business should develop objectives that are in line with a written code of ethics. For instance the profits that the expansion will bring should be passed to the stockholders of the business it would be unethical for the company to keep all the profits they make. It would be also unethical for the expanding business to sell products that are inferior to the customers. It would also be unethical for the business to be making a lot of profit and not giving their employees any pay rise or bonus. The business decision to outsource employees from other areas apart from the community they are based could be quite unethical. The business should strive to within the community they are situated (Rank, 2010). The business should ensure that profits realized are transferred to the employees and stock holders.

Social responsibilities of the business

The expanding business should assume a social responsibility. At the end of the day the business should not just be concerned with making profits but also being a positive impact to the society. The business in its production process should avoid pollution. The business should also create employment opportunities in the new areas they are located. If the business assumes these social responsibilities then it will have a positive impact to the community and there would be no hesitation by the people to purchase the products they offer (Friedman, 2007). This is especially important since the business is in a new area and it has to portray itself positively.


For a business to succeed in its new area the management should put into consideration all the factors that have been discussed and there will be no doubt of success of the business in the new area.


Friedman, M. (2007). The New York Times Magazine;The Social Responsibility of Business is to Increase its Profits .New York Times company

Rank, J. (2010) Encyclopidia for business; Business Ethics

Bax, A. (2011). expanding your business to a new market. For entrepreneures, 2(5), 3.