The Executive Of The Abc Company

1288 Words6 Pages
Introduction: The CEO of the ABC Company asks me to help them achieve the goal of generating $3 million in sales. The company wants to incorporate the making of cedar dollhouses with the raw materials that they have on hand. In order for me to help them accomplish said goal the CEO has come to me with a new opportunity that he has been working on. I must come up with a financial plan to generate money so we can start the new expansion. The Risks: In expanding a business or adding a new product, numerous risk factors may perhaps hinder the growth of the company. Adding a new product can be more overwhelming than one can see an it can lead to the lapsing of the deadlines for production not just for the new product, but also for our existing product. We have to look at the rise in costs of raw materials needed to expand new projects. We need to know if our current supplier will give us a deal on our supplies, or do we have to go elsewhere. Some of the questions we need to ask is, will this product fail before it is stared. Is current market already overwhelmed or even weakened with similar products? How will this influence our current product? The main question is can we afford it. Advertising: A few steps that I feel that will help us avoid some of the risks are to sell the dollhouses made to order. That way we do not have to increase our budget on buy materials by that much. By doing this over time we will accumulate enough material from our other products.
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