Subject category:
Production and Operations Management
Published by:
Ivey Publishing
Version: 2004-03-09
Length: 17 pages
Data source: Field research
Abstract
The president of Wheels Group and the founder and major shareholder of the company, are evaluating alternatives with respect to pursuing the goal of doubling the company''s revenues over the next five years. However, the alternatives presented to them reveal a tension between two competing growth strategies: (1) an asset based growth strategy; and (2) a non-asset based growth strategy. A decision is required with respect to which opportunity to pursue, recognizing that both strategies cannot be pursued simultaneously. Complicating the decision is the fact that approximately 75 per cent of the company''s revenues are currently derived from non-asset-based activity. The opportunity is provided to explore issues associated with developing, evaluating and implementing business strategy within the third-party logistics industry.
About
Abstract
The president of Wheels Group and the founder and major shareholder of the company, are evaluating alternatives with respect to pursuing the goal of doubling the company''s revenues over the next five years. However, the alternatives presented to them reveal a tension between two competing growth strategies: (1) an asset based growth strategy; and (2) a non-asset based growth strategy. A decision is required with respect to which opportunity to pursue, recognizing that both strategies cannot be pursued simultaneously. Complicating the decision is the fact that approximately 75 per cent of the company''s revenues are currently derived from non-asset-based activity. The opportunity is provided to explore issues associated with developing, evaluating and implementing business strategy within the third-party logistics industry.