What Are The Advantages Of Expansion?

• economies of scale.
• more power in the market.
• increased status and reputation will make it easy to launch new products.
• staff may be rewarded, which will increase motivation.
• more money.

What do you think is the advantage of expanding your market?

A primary benefit of business expansion is the ability to attract and retain new customers . When you add new products to your portfolio or move into new markets, you can bring in previously untapped customer markets. ... Growing a loyal customer base is the best way to achieve stable and growing profits over time.

What are the disadvantages of expanding a business?

Some of the common disadvantages of business expansions are: shortage of cash – you may need to borrow money to meet expansion costs, eg buy new premises or equipment. compromised quality – increasing your production output may lead to a decline in quality, which can lead to loss of customers or sales.

What is advantage and disadvantages?

absence or deprivation of advantage or equality. the state or an instance of being in an unfavorable circumstance or condition: to be at a disadvantage . something that puts one in an unfavorable position or condition: His bad temper is a disadvantage.

What are advantages and disadvantages of expansion?

One advantage of expanding metal is its use in thermometers. The mercury (liquid-metal) in the tube expands when they get hotter. One disadvantage of expansion is that roads crack during the cold season because they contract and expand during the hot summer . This expansion can make road surfaces rough.

What are disadvantages of expansion?

• A shortage of cash. You may need to borrow money to buy new premises or equipment to expand.
• Increased capital requirements. ...
• Loss of control. ...
• Compromised productivity and quality due to lack of resources.

What are the disadvantage of thermal expansion?

• changing of shape and dimensions of objects such as doors..
• wall collapsing due to bulging..
• cracking of glass tumbler due to heating..
• bursting of metal pipes carrying hot water or steam...

Why do owners want to expand their business?

Why the owners of a business may want to expand the business? ... Possibility of higher profits : As businesses expand ,sales turnover improves, which means more profit for the business and more returns for the owners. More stability: Big businesses are more stable and less vulnerable to market adversities.

What are the disadvantages of business?

• Financial risk. The financial resources needed to start and grow a business can be extensive. ...
• Stress. As a business owner, you are the business. ...
• Time commitment. People often start businesses so that they’ll have more time to spend with their families. ...
• Undesirable duties.

Is it a good idea to expand a business?

Business expansion has the potential to expose your products and services to a broader audience. Increasing your customer base will help you convert more customers and improve your sales. This leads to higher profits. Just like your team members, customers are important to the success of your business.

What advantages do small businesses have over large ones?

In addition, small businesses have certain advantages over large businesses. Flexibility, generally lean staffing , and the ability to develop close relationships with customers are among the key benefits of small businesses.

What costs would a business have it expanded?

1. Employee turnover. ...
2. Business shrinkage. ...
3. Employee benefits and payroll taxes. ...
4. Potential legal fees. ...
5. Office repairs and maintenance. ...
6. Building office culture.

What are the advantages of working for a large company?

• Career development and opportunities. Formal training programs are often readily available in large companies, meaning there are more opportunities to develop and grow. ...
• Learn from the best people. ...
• Diverse community. ...
• Networking. ...
• Office perks. ...
• Support outside of work.

What are disadvantages?

(Entry 1 of 2) 1 : loss or damage especially to reputation, credit, or finances : detriment the deal worked to their disadvantage. 2a : an unfavorable, inferior, or prejudicial condition we were at a disadvantage.

Which is disadvantage of ERP?

Disadvantages of ERP are:

The installation of the ERP system is costly . ... The success depends on the skills and experience of the workforce, including education and how to make the system work properly. Resistance in sharing internal information between departments can reduce the efficiency of the software.

What are examples of disadvantages?

The definition of a disadvantage is an unfavorable situation or something that puts someone in an unfavorable situation. An example of a disadvantage is a baseball player not being able to play . An example of a disadvantage is a baseball team’s star player having to sit out because of an injury.