Ch 22 Business Expansion (Part 2)

Debt Capital + Equity Capital

Control

Interest Repayments/Dividends

Risk

Collateral

Tax

Implications of Business Expansion for the Business

Short + Long-term Implications

Organisation Structure

Product Mix

Profitability

Employment

Implications of Business Expansion for Stakeholders

Consumers

Government

Local Community

Employees

Investors

Importance of Business Expansion

Domestic Economy

Increased Employment

Increased Tax Revenue

Further Expansion

Lower prices

Foreign Markets

Increased Employment

Increased Exports

Foreign Currency

Spreading Risk

Improved International Relations

Restrictions to Business Expansion

Irish Law

EU Law

Advantages of Businesses Remaining Small

Easier to manage

Customer loyalty

Change

Faster Decision-making

Disadvantages of Businesses Remaining Small

Costs

Lack of Capital

Staffing

Profits