Abc Company : An Aggressive Growth Approach

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ABC Company Report ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, which is a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next three years. ABC Company would like to begin a new project opportunity in order to help reach the growth targets. This project involves using some of the shingle scrap materials to build cedar dollhouses. The new dollhouse product line will be able to leverage the company’s existing manufacturing facilities and current staff, but will add additional raw materials and be more time-intensive to manufacture than current products. This report will provide details about the estimated product costs, what is needed to break even on the project, and what level of return this product is expected to provide. Risk Profile ABC Company is going for an aggressive growth approach. An aggressive growth approach increases the company’s exposure to a lot of different risks. In an attempt to increase sales, launching a new product increases the risk of customer acceptance. When the new product comes out there is the possibility of other companies trying to make the same product, this could result in the loss of market share. New products mean different supplies rather than the materials on hand. This means that new suppliers must be obtained and different

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