The option for Westbourne (UK) to expand and the problems that it may have to face can be analyzed further.Westbourne is currently a small leisure center requiring an expansion, an expansion to the business opens great profitable ventures for a company but along with these benefits, some other costs may have to be incurred. The expansion in Westbourne may require additional staff members to be hired in the company so as to cope with the increased number of customers. The additional staff would have to be paid wages, thus increasing the expenditure for the company and might as well reduce the profit. This reduction in profit can be avoided by adopting different pricing strategy i.e. either charging high from the customers (negative impact is the reduction in customer due to higher prices that they may have to pay) or by using other alternative strategies such as investing in the advertisement of the business which may increase customers for the company. The problem that may arise because of advertising is of the huge cost that would have to be tolerated by the company, usually advertising requires a lot of fortune to be invested and for the success of any advertisement, it is necessary that it may be kept on for a longer period of time to create more awareness amongst the customers.The owner of Westbourne may have to face the risk of liquidation all alone if the company may prove unprofitable in the future. The owner of Westbourne (UK) would be exposed to the liability of its entire business and may go broke because of the lack of funds available to meet its day to day obligations.As with any business, the owners of the company require the desired amount of return on their investment before any investment is made into any project. The financial figures of Westbourne suggest that the company seems to be profitable. This profit is the residue amount after deducting every possible expense.
Managing Business Enterprise Westbourne Lesisure Center