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ABC Financial Business - Research Paper Example

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An effective business is vital in a company’s long term strategy.Having a business such as ABC Company there may be the difference between successfully raising it, and taking it to the ground. …
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ABC Financial Business Research
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"ABC Financial Business"

Download file to see previous pages Business planning to expand its sales with a 25% increase requires the management and its shareholders to set their targets and goals through a forecast budget. An effective business will lays out the perfect strategy in realizing the companies’ goal of profit maximization. By having the capability to read the agency’s future, it is practical to form feasible strategies that work in favor of the additional products that can leverage the current ABC employee skill-set as well as the manufacturing facilities. In this case, it is critical to form a financial plan to assist the agency’s long term objectives. This is especially if it is the first time trying to make it in this entrepreneurial venture. Some of the aspects that surround this business need addressing so as to make it simpler to deal with the hurdles that these project faces. This paper will examine such a plan in bide of setting aggressive growth target of reaching $3 million annual sales within the next 3 years and how it may impact the growth and development of the business, in the long run. The paper also analyses the overall risk profile of the company based on current economic and industrial issues that it may be facing based on the track records of its financial statements. Discussion It is fundamental for one to be apprehensive about the issues the market may be facing. One of these issues may be an economic downturn. The economic activities that surround this manufacturing industry are a vital aspect in the continuation of the new proposed project (Chandra, 2011). An expansion of the activities occurring in the manufacturing environment means that, there is a chance of having restructuring other interdepartmental that do facilitate the production of final product. As a growing business, the board of management needs to be sensitive to such customer needs and requirements. Overall customer satisfaction is another sensitive area to look into in the business. Customers prefer to have access to information. The ability to provide this access at a rapid pace means that, they will be inclined to get more involved with the business (Brigham, & Ehrhardt, 2011). This works in boosting the annual revenue acquisition. This is where technology comes into play in the business. Offering customers information leads to more interaction, which is the primary focus of the product. Government regulations are also a sensitive area to look into while trying to grow the business in order not to derail the quality of their product (Chandra, 2011). The government policies could also improved access to financial services which on the other hand is help-full in raising the funds for such proposed expansion. All these sensitive areas might determine if the business will grow after expansion, or if it will remain stagnant as at the commencement of the pursuit of new venture. It is very pertinent to acknowledge the presence of all factors present in the industry that might enable it to grow, decline, or remain stagnant (Brigham, & Ehrhardt, 2011). In order to attract a wide variety of customers, it is vital to have an image of the build cedar dollhouses that are to be offered in the market. The price would depends on alternative product which the competitors also do offer in market, that reflect the loyalty of the client, and how much they are invested in the business as a cost of production. Loyalty in any business is fundamental in its growth as cabalist. However, diverting customers from the competition is instrumental in covering the business and some of its costs. In order to provide capital to enable the business to grow and give the shareholders their share, ...Download file to see next pagesRead More
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