Genesis Expansion Plan
Q. 1 Describe the financial environment at Genesis.
Genesis Corporation is a company who develops highly technical and demandable software’s for commercial and military uses. At present Genesis works only in USA and thinking to expand its business beyond USA as well. It has a outstation center in Canada but for meeting its Global demand it needs expansion to other part of the world as well. But for expansion every company needs financial support as well as organizational inputs but Genesis do not have very strong financial background (Dizik, 2013).
Q. 2 Describe how the company’s strategy for financing as a startup may no longer be suitable as it seeks to expand its operations globally.
At present Genesis has only two financing options available which are not very effective in its expansion. Family seed monies and an equity investment by a small group of venture capitalists have the only option for the Genesis. Rapid revenue growth, the operating expansion, new international clients, and the involvement of more professional ownership necessitated an expansion of the management team (Dizik, 2013). For making a rapid start company needs a very strong financial background because a huge investment need for setting up its infrastructure in other locations. Company needs money to recruit human resource in the new location. So the present options available for the expansion are not enough to support its future expansion plan. Genesis needs to think some more viable options for its business.
Q. 3 Identify and explain two ways Genesis can improve its strategy.
Genesis can improve its functioning by updating its Strategy plan for the expansion of its Business. For getting rapid revenue growth, expansion, new international clients they needs money and this can be done in two ways.
Genesis can call more professional people for getting a stake in the company’s ownership which results in increased financial inputs to the company. Using this trick company company can fulfill its dream of expanding at a very fast rate.
- By involving more Professional Owners in Genesis
The expanded management team at Genesis which will, which now oversees domestic and international operating facilities consists of a general operations manager, an accountant, a software application expert, a marketing manager, a production manager, and a customer service manager (Dizik, 2013). All of these individuals with the exception of the production manager were outside hires.
- Company needs to improve its management team as well
Q. 4 Explain how global financial markets in terms of financial strategy affect Genesis.
Global financial markets can affect its financial strategy in various ways. For example companies get financial benefits from global markets on the basis of the it’s financial support. Since Genesis does not have any effective financial support plan except the two sources of finance, most of the global organization may deny from supporting the organization financially.
Dizik, A. (2013). 10 Questions to Ask Before Expanding Overseas. Retrieved from http://www.entrepreneur.com: http://www.entrepreneur.com/article/226517