Junior (College 3rd year) ・Business ・APA ・5 Sources

Expansion is one of a company's main goals. A business can expand in a number of ways. For instance, in our situation, the business might develop by offering more products in its current markets. Increasing potato productivity is one example. Sales of vegetables like leeks and calabrese broccoli among others will rise (Stanley, Amaral, Buldyrev, and Havlin, 2016). Many earnings will be realized as a result of this. The corporation will use the advantages to increase investment. Creating new stores and buying more transportation vehicles are two examples. Furthermore, this company may expand if Watson Company merges with other businesses. If Watson has no work in his fields, he always visits other growers. If in any case during his visits to the growers agrees with another grower to merge with his company expansion will be very easy. For instance, once companies merge, viable decisions are made, operation costs lowers as well as expanding customer bases. The two companies will join hands in production resulting to meeting customers’ needs hence realisation of more profits. The proceeds will be used in the expansion of the enterprise. Therefore, if Watson combines with another company producing the same products as his business, it will expand.

Moreover, looking for more sources of finance may lead to expansion. Capital to broaden the company may be got from loans either long term or short term, also from crowd funding, leasing of the company's property as well as from grants (Kim, and Mauborgne, 2012). The company will be able to acquire required capital to increase its productivity. It will also be able to hire qualified staff as well as invest more. This will result in the company expanding.

An equity investor is individuals who invest money in a particular company for a share of ownership in the enterprise. Watson is not favoring these type of investors and wants to take the route of the cooperative. This is because these investors will only contribute money to his company and will not be involved in the process of growing and selling the vegetables yet they will expect ownership of the enterprise. Also, Watson wants to take the route of corporates because once he joins a cooperative, he will enjoy some benefits. For example, a cooperative is stand-alone enterprises. This indicates that Watson will enjoy the benefit of not being personally reliable to the assets as well as the debts of the company (Solomon, and Kirgis, 2013). Watson also sees this as the route because a corporation protects an individual’s personal assets from the danger of lawsuits.

Moreover, a corporation never dies. Watson considers taking the route of cooperative because he is sure that once his company becomes cooperative, it will live long and this will be for the benefit of his family. Watson indeed says that the private investors do not have any information on how to run a business. Therefore this makes him fear them (Artz, and Kim, 2014). Also, the private investors care about their money and nothing else. Furthermore, a cooperative will be of great important to the five siblings in future once they inherit it. They will be able to experience discounts when purchasing products as a collective usually buy in bulk Gundry, and Welsch, 2011). They will also have the power to acquire advertisement which will result in their cooperation being known. This will result in increased sales hence Watson’s need to take the route of the cooperative.


Artz, G.M. and Kim, Y., 2014. Business ownership by workers: are worker cooperatives a viable option?.

Gundry, L.K. and Welsch, H.P., 2011. The ambitious entrepreneur: High growth strategies of women-owned enterprises. Journal of business venturing, 16(5), pp.453-470.

Kim, W.C. and Mauborgne, R., 2012. Value innovation: The strategic logic of high growth. Harvard Business School Pub.

Solomon, L.D. and Kirgis, M.B., 2013. Business Cooperatives: A Primer. DePaul Bus. LJ, 6, p.233.

Stanley, M.H., Amoral, L.A., Buldyrev, S.V. and Havlin, S., 2016. Scaling behaviour in the growth of companies. Nature, 379(6568), p.804.

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