2. How should QL decide when to open a new facility and

Question

2. How should QL decide when to open a new facility and expand their capital base to fund it?

TutorBin · Accepted Answer

2. As we all know, the quality services is well appreciated in the market and sooner or later it is going to rule the market. Opening a new facility is a tricky decision and it may go both sides. In simple terms it may goes in the favour of the organization or it may also turned out to be a disaster for the company. Besides it is very hard to calculate exactly whether it will be in the favour of the company or not. So, my idea is that QL should be mentally prepared to take some risks. Right now, Quiet Logistics is on the higher side of demand in the business world. But its users are limited in numbers. Basically, business world hire the services of Quiet Logistics. So, in my opinion, there is no harm to expand in that area where industries and business are increasing rapidly. And it is not wise to expand in that area where business and industries are almost in the equilibrium. Equilibrium is a situation where no firm choose to enter the market due to lack of opportunity and saturation of the market. However, before the expansion it is always wise to do some market research for any company. It gives a rough idea about the subject matter and helps the company to come to a conclusion or decision.

2. How should QL decide when to open a new facility and expand their capital base to fund it?

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