The Implications of Expansion (Leaving Cert Business): Flashcards
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Short-term product impact of expansion
Short-term product impact of expansion
Bigger range of products
Short-term mgmt structure change in expansion
Short-term mgmt structure change in expansion
New structure to eliminate duplication (e.g., two CEOs)
Short-term finance need for expansion
Short-term finance need for expansion
Raise funds via shares or borrowing
Long-term finance benefit of expansion
Long-term finance benefit of expansion
Better credit rating, easier loans, attract investors
Short-term profit impact of expansion
Short-term profit impact of expansion
Initial costs may decrease profits
Long-term profit impact of expansion
Long-term profit impact of expansion
Economies of scale should increase profits
Short-term employee impact of expansion
Short-term employee impact of expansion
Job insecurity & lower morale due to redundancies
Long-term employee benefit of expansion
Long-term employee benefit of expansion
Better pay and job security
Long-term customer service concern in expansion
Long-term customer service concern in expansion
Possibly less personal service
Short-term share price impact of expansion
Short-term share price impact of expansion
Share prices rise