CanGo Essay

Issue 1 No clear strategy for expansion CanGo has had its success, and now they are tone into the future. Their question is, Whats going to help them grow? and as Liz said, unblock them into a mighty oak. CanGo recognizes that branching out and delving into new territory provide be profitable and its popular with investors since theyre thinking of going for an IPO. The possibilities of adding e-books, be adrift audio and video is hip but they also recognize that the online drama industry is on the cutting edge for growth. With all of the brainstorming ideas CanGo has they do recognize theres a scarcity of resources such as capital and people. testimonyThe management team at CanGo is full of ideas link up to expanding its product line. Liz has mentioned the possibility of E-books, music and video, and Andrew suggests online gaming. Expansion is just one topic, as the company is catching offering IPO (initial public offering). The brass is contemplating major decisions without master guidance. The employees will soon be asked to juggle more responsibilities, without the appropriate resources. CanGo should examine superfluous consultation specific to the objectives it wants to achieve.In addition, the company mustiness consider the risk and where to allocate resources to be maximize profit. Furthermore, there will attain to be some degree of advertising and marketing to generate interests. CanGo feels that the outmatch way to handle new ventures is to use in-house employees. Pulling employees from jobs they are already doing will no doubt take away from quality. We recommend that warren and Liz take into consideration the opportunity cost of expanding at this time. Will the benefits outweigh the cost of expanding.Issue 2 No capital for expansion CanGo must consider how to combine its limited resources to produce the best mix of goods and services. A cost-benefit analysis will help them measure the cost and the benefits correctly. They will contra ct to think about two faces of analysis (1) Marginal Analysis and (2) Cost-Benefit Analysis.Recommendation Performing a marginal analysis will examine how the be and benefits change in response to their incremental changes in actions. Any additional action that CanGo does will bring about additional cost so, type of analysis will determine if the expected benefits of their actions exceed the added cost. It was mentioned casually that the still source of capital as an IPO. This point was expounded upon by the poor sandwiches world provided.I dont think Warren made the color to be rude, but to illustrate the point that financial capitol is limited peculiarly in terms of expansion. CanGo is generating interest in its industry and community. The time is respectable to offer an initial public offering. CanGo needs professional guidance in analyzing what is value and assess the possibilities of an IPO. It may consider taking advantage of its success in japan. CanGos IPO does not h ave to be throttle to its locality it has to start thinking international in scope. Its popularity in Japan alone may generate the capitol necessary to expand in product, personnel, and infrastructure.