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Expansion and How?

In: Business and Management

Submitted By chrisdeevega
Words 2320
Pages 10
Phase 5 IP
Chrisdee Vega
Colorado Technical Institute
SCM210-1404B-06
Professor Chance
December 22nd, 2014

Section I: Introduction Throughout the lifetime of our business, we have held steady in our sales. There is no reason why we cannot expand and grow our business. There will be some qualitative pros and cons during this transition but the outcome will be worth it. We are going to be adding distribution centers all over the world to aid in this growth. With a product like ours that has held up through the economy falling, we really have no limit to our success. In this transition, we are going to be able to provide timely deliveries to our customers. We will need to strategically place these locations to maximize our ability to deliver on time. We will also be able to provide these deliveries at a reasonable price, which we were struggling with in the past. When we were shipping from the East Coast all the way to the West Coast, we were losing money and making our customers unhappy with untimely deliveries and higher cost shipping. This may be an inconvenience to our suppliers having to ship to us internationally. If this is so, we will need to adjust pricing where we have our costs rise but more business for us means more business for them. In the end, this is going to make our customers happy, which will in turn; bring in more sales for all involved. We will face some obstacles in this transition. When we decide where to place these distribution centers, it is important to make sure that there will be a good pool of people to staff these locations. We will need to make sure that the wages we will have to pay will benefit our company as a whole. It has been easy to control these costs in the past because we were located in one area. Labor can be one of the largest costs of running a business therefor, the overhead needs to be balanced.…...

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