14 Identify the problems that may arise from expansion of a business. Analyse how these problems can be resolved. [6]

[Mahnoor Ali]

[KN] communication gap
[AN] this will make it difficult to convey updates and mis understandings
[AN+] to resolve, IT and efficient administrative system should be used

[KN] lack of working capital
[AN] This after expansion will make the operations challenging and confusion will be at its peak
[AN+] in order to avoid and resolve such problems, the business must ensure that efficient cash is available in the buisness.

[Huma Junaid]

[KN]Expanding requires substantial financial resources for investments
[AN]Financial strains can occur if revenues from the expansion are slow to materialize, leading to cash flow problems
[AN+]hence conducting thorough financial analysis and planning to estimate the costs and cash flow implications may help resole this issue

[KN]Expanding to new markets or regions may require adjustments in product or service offerings to cater to local preferences or regulations
[AN]Failure to adapt to local markets can lead to deteriorated brand image
[AN+]Conducting thorough market research to understand local customer preferences will help reduce the chances of this happening