BUSINESS EXPANSION

An organization looking to expand offered an engagement to study a new business expansion opportunity.

    ARNAN took on the challange.

 

After identifing both other companies that had attempted to enter this new market and evaluating the destinctive competencies of the organization, ARNAN recommended against the expansion.

 

The organization went ahead with their expansion plans; five years later, the organization closed that division with a $35M charge to earnings.  Although the business could have been profitable, that organization didn't have the right competencies to enter that specific market.