Today, I want to introduce us to the essential strategies needed for consolidation and expansion of a business enterprise.
Since every business enterprise is required to develop its own strategies for consolidation and expansion, which may be different from another enterprise’s strategies even if they are both operating same type of business.
The reason being that these strategies should be able to meet the aims and objectives of establishing the business in order to achieve the type of image it wishes to project to its customers.
Strategy for consolidation or expansion of a business links present situation of the business with expected status of the business in future. A strategic plan that will take into cognizance the vision and mission of the business outfit needs to be developed. Vision states where the organization wants to go in the future while mission statement gives summary of the beliefs of the organization and where it is now.
A strategic plan comprises the action that the enterprise needs to take to achieve its vision. It is a long term planning that may involve additional fund for human resource development, technological changes and new market penetration.
Developing a strategic plan is easy when changes in the business environment are revolutionary and predictable. It will be possible to extrapolate what the future is likely to be and set strategic vision for the expected best or worst scenario. A well developed strategic plan is set to extrapolate the present business condition into some time in the future with some factor(s) added to take care of growth and development.