From section three if Chocoholics PLC wanted to expand externally they could merge with another company in the same profession, they could take over a smaller company with a good reputation and one that is well known. They could also go for an acquisition and joint venture.
Chocoholics PLC could use Matrix’s idea of expansion. They could keep on selling their existing product in the existing market. But a more disciplined approach should be taken. The product must be promoted and special offers should be provided, so more products get sold. This is the way that Chocoholics PLC could sell more products.
An existing product could also be placed in a new market. New research would have to be carried out. Depending on whether the new market will be based in the U.K or worldwide. There are a number of different options to be considered. Chocoholics PLC could go into a joint venture with a company that is already set up in the new market. There is less risk. Chocoholics PLC could also open their own branches, but this could prove to be a big risk because they might not have enough experience to set up in a new market. Chocoholics PLC could also take over another company, and send their products to them, from then on it could be sold to the shops.
A new product could be designed and placed into an existing market. Market research will have to be carried out to determine what the public requires and what the demands are. Chocoholics PLC could also create a new product and put it a new market this is the riskiest out of all of them. It is always guaranteed to bring success. Lots of research will have to be carried out and a large amount of capital will be required to produce the new product and place it in a new market.
The research that I have carried out on the internal and external methods of growth has been fairly reliable and has pointed me in the right direction. All of my research comments on the positive and negative aspects of the different types of expansion. The research has helped me understand the different types of growth in much depth, and I possess a greater understanding of it.
The information that has been the most helpful is the articles on external methods of business growth. Some of the aspects are explained in a lot of detail. The article on Carlton and Granada in merger talks was a lot of help because it outlined what effects it would have on the two companies. The article was clear and precise, and explained the history of the two companies.
The article on Sony Ericsson was also good, because the two companies had to go into a joint venture to compete with the other giants of the mobile industry. It also stated the advantages that the costs would be cut and another positive aspect would be the rise in the share prices.
There were slight problems with the research that I carried out some of it was difficult to obtain, so it took me a long period of time to find all of the articles. To resolve this problem I also looked for the articles that I required under the search engines and I came out with positive results. Most of the articles that I found for the external methods of production were horizontal integration. I didn’t possess any vertical forwards or backwards growth. To overcome this I found an article which was vertical forwards, and I read it through. There were no major problems that I identified with my research.
