RES 351 Week 2 Learning Team Reflection
RES 351 Week 2 Learning Team Reflection
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Date Created: 11/07/15
Learning Team Week 2 Reflection 1 Week 2 Reflection RES351 University of Phoenix Learning Team Week 2 Reflection 2 Week 2 Reflection In week one of Business Research we were each challenged with taking in the full scope of what is truly involved in the business research process. This covered a variety of topics and objectives starting with recognizing the situation, problem, issue, or opportunity along with the research and ethics involved in answering the need. To better elaborate on what our team learned we applied the objectives to a specific situation. The situation being discussed is a company discovering a need to expand their business. They have two main options which are to add onto their current location or to open a new branch to fit their needs. The following will detail why a company would need to expand, the significance, scope, magnitude, and feasibility of their options, the research process involved, as well as the ethical issues involved in the research process. Determining the Need A successful business eventually may have to face the issue of having to discuss the topic of expansion because of company growth. Business growth often is a sign that it is time for expansion; these signs can take many forms, and most of the time this subject comes about because of the overwhelming workload a business may occur because of the success it has earned. This could be very exciting for most business owners, but the excitement is only the beginning. When a business grows so does the number of employees along with the number of salaries, this is why it is important to expand accordingly to the fit and needs of the company. It takes a large amount of reviewing and research to see what is needed for the expansion. Business owners must ensure that the need of expanded their operation will generate profit. Learning Team Week 2 Reflection 3 Some expansion methods may include opening another location or just adding to a current location. Opening a second location is the most expensive option because this includes finding a new location, deciding to lease or buy it, and renovating the space to tailor the company is just a few to consider. Adding to the location could be as simple as adding new software that could cut the work productivity in half. Significance, Scope, Magnitude, and Feasibility of Expansion When a company is making a decision to expand their current facility or possibly move to another location there are several factors that will need to go into the decision making process. A decision such as this requires accurate and factual research to be completed in helping to understand which option is best suited for the company. To understand the significance of the expansion the company has to ask what is their ultimate goal to achieve is. Do they need more storage, more production lines, or more workers, what are their needs? Will this expansion make them more competitive within the marketplace and give them a competitive advantage? Next when looking at the scope of the project the company will need to look at their current facility and is it able to be expanded upon versus looking at another location. Factors like expansion cost versus new construction cost will have to be analyzed to determine which will be most cost effective in the long run. By relocating to a new facility or location could be more costly however it could turn out to be more productive in the future for the company. It is important to think about the return on either investment in the long run of things. The magnitude of this research will have to be quite substantial as there are many factors to consider. For instance the consideration is not limited to just cost. Another factor is productivity. Regarding relocation of employees, can the company afford a project of this size? Learning Team Week 2 Reflection 4 What is the longterm outlook on productivity and what is the return on investment going to be? Last, looking at the feasibility, a detailed research plan will need to be conducted on the financial stability of the company. Can the company afford the cost of such a project and sustain future costs down the road. Is the timing right for them to take on an expansion or is it going to be more costeffective to wait. Research Involved in Expansion After the significance, scope, magnitude, and feasibility have been covered it is important to take a deeper look into what it takes to make a decision. To do this business research is required. Specifically then deciding to expand or open new business locations there are questions that need to be researched and answered. The first question would be, which would be more beneficial an expansion or an opening in a different location? The research would most likely begin at cost. Financially which option would be more plausible? Expanding would increase the room for more office space, inventory, or production yet it would keep the business at one location. Opening a new location would open new opportunities and possibilities for new clientele. When thinking about adding onto a business, space is a concern. How much room is there to add on, where the company would begin the expansion, and what is the need for the addon itself? Of course the company is growing, but where has the space been lost? In a company that holds a wide variety of inventory to be sold a warehouse is generally used for storage of the products. In this case the question would be how much storage space is needed? The financial obligation of the expansion would be the next to research. A budget would be the best blueprint to guide the business. How much does the business have saved for the expansion, does the Learning Team Week 2 Reflection 5 company profit enough to afford a loan, and how large of anadd on is needed? Along with finances, growth means new opportunity for employment. Not only does the company need to consider the financial aspect but also the need to look at the economic impact as well. Economically where is the company, is it a time of profit or a time for saving? When a new location has become the decision the question will come back to where is the best place to open a new business economically? The new location needs to be set in an area that will be accepting of the company. If the business is a small donut shop and there are three other donut shops in the area, what will the company stand to benefit? However, if the area is a freshly built residential area with no other donut shops in the area, the company will have a good chance in success and profit from the second built location (expansion). The other factors are the same as the addon, cost, financial consideration, but with a twist, location, location, location. When expanding the business by opening another location the first thing to consider is where. Research the surrounding areas and if the economy is sustainable in the areas being looked at. The answers gained from this research will determine the location that the company will be best suited. Another factor is the environments culture. What types of ethnical backgrounds live in the areas being considered? Will these typed of families and businesses benefit from the type of business that you are trying to build? City regulations must be looked at as well. If the company is more industrial then there are laws pertaining to how far the building is to be from the residential site. There are many research factors that go into expanding a business. The research can only begin with the right questions asked. Once those questions are asked and the answers are in hand a hypothesis can be formed on how the company may do. It is good to have an open mind about the area being looked at for a new site or the type of addon that might be started. The customer Learning Team Week 2 Reflection 6 is who this will ultimately affect, what will there thought of the change be? In this case how long will construction take? Who will be affected by the construction? What businesses that surround stand to lose customers due to the construction? When expanding it is important to be friendly with the surrounding neighbors and competitors as well as considerate of everyone that may be affected. “Expanding operations does not always mean more profit. You may be doing more volume by adding a second and third store and working harder, but with the additional overhead, you may not make any more money” (MendozaBates, 2012). Ethical Issues Periodically companies are faced with certain dilemmas that must be considered so they will continue to grow and execute their product effectively. Once a workplace reaches its maximum capacity, the decision to expand or relocate a company must be researched carefully so ethical issues do not rise. When considering a move, a company must determine if they will stay locally, move out of the city or state. Employees must be notified immediately if their jobs are going to be eliminated because people depend on their jobs to support their families and ethically it is the right thing to do. Companies must also look at the cost of a relocation or add an addition to their current building, and cost cuts must not affect the quality of the product sold or the condition of the building or building materials needed to complete their goals. Customers must not suffer the fallout of mismanagement of funds to complete the project. Ethical issues will not rise if the company researches their options in a precise manner. Brainstorming, careful planning, and communication will be the keys to a successful transition. Companies must do everything that they can to protect themselves and their employees to maintain a high ethical standing within their peers. Wrap Up Learning Team Week 2 Reflection 7 Major business decisions such as expansion have to be carefully considered. The first step is identifying the need. From there it is a matter of identifying the options which includes the significance, scope, magnitude, and feasibility of the situation and options. After this information has been determined the business research begins. Through this research they can see what options are best suited for their situation and what decision will be the best move for the company. It is also important to recognize ethical issues that may arise within the research, and the decision being made. After all of this information is considered and properly sorted through, the best decision can be reached and the company can continue to be prosperous and successful. Learning Team Week 2 Reflection 8 References MendozaBates, Mayumi. (2012). Power Homebiz Guides: Things to Consider Before Expanding Your Small Business. PowerHomeBiz.com™ http://www.powerhomebiz.com/vol75/expand.htm
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