The factors that have led to success in a particular city, region, or country may be quite different than those in the new geography.
Further, expansion of any sort takes resources. Attempting aggressive geographic growth without adequate funding and a good plan is an almost guaranteed recipe for failure.
If you are considering a geographic expansion for your business, you will need to carefully assess a wide range of questions, including:
• How do the competitive dynamics in your new market compare to your current one?
• How will the expansion be managed?
• Are there supply chain or quality-control challenges that could surface with the new geography that
are not present in your current market?
• Is the customer base different in the new geography?
• What will the management and ownership structure look like? Is franchising a way to go?
• If you are considering an international expansion, a whole additional set of issues comes into play including taxation, regulation, cultural and legal differences, etc. Are you prepared to address these issues?
Sample Solution
siness organizations can achieve a sustainable competitive advantage by integrating total quality management and business process reengineering. TQM seeks continuous improvements in product/service quality over time, while BPR takes advantage of information and telecommunication technology to achieve dramatic changes in organizational processes that facilitate performance improvements. While the two management approaches both seek to enhance performance and quality, they are often perceived as complete opposites because of their dissimilar pace, time requirements and change initiatives” (Lee and Asllani 409). Lee and Asllani however, argue that the two philosophies and approach to management control the course of the business “have many similarities and can be combined to form the ‘endless quality improvement’ management approach” (Lee and Asllani 409). Similarities between reengineering and TQM out number differences, both; are initiated by senior management, focus on enhanced quality, seek the contribution of all employees, are team oriented, allows the blurring of pre-existing departmental boundaries, and both requires full management commitment. However there are some differences between these concepts. “Quality programs work within the frame work of a company’s existing processes and seek to enhance them by means of what the Japanese cal Kaizen, or continuous incremental improvement” (Hammer and Champy 52). The idea here is to do what you already do, however only do it better. With QTM the process is never truly completed, whereas with BPR the process can be quickly called completed. Also with QTM the process is evolutionary and utilizes a democratic management style, however with BPR more measurable results>
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