TFC should expand west whereby it will enjoy the rewards of its decision. The findings of the forecasting have a prediction that there would be the increase in the ability and the capability of the company to have additional products for its expanded market. It is backed by the 10% prediction in the revenue growth and the decrease in the operational expenses from 82% to 75% of sales by the accounting department. Consequently, the profit margin will increase exceeding 10% in accordance to the first year prediction which comes as a benefit to the shareholders of the company implying that the West Coast expansion would lay an opportunity for the company
Agencies conflicts are a challenge to the decision to expand on this public traded and conservative company. The creditors crave for their pay while the management works to ensure the growth of the company as well as benefit the shareholders. The conflict between the managers and the shareholders could also a roadblock which is characterized by the reluctance to venture into a risky project, diminished attention on crucial projects and increased acts on the extracurricular activities. These challenges affect the commitments and the efforts towards the expansion of the company's production and markets.
None of the agency conflicts could apprehend the expansion provided that the managers make informed decisions. Time management should be the prime tool as one can rest and have fun especially on Friday afternoons and at other times work maximally. The conflicts of the agency will be minimized when all involved parties remain within the guidelines. The decision-making abilities and the actions of the parties come with responsibilities. Conflicts and disagreements are minimized by being focused on the goal such that they do not affect the companys income.
Desired Characteristics of the Board of Directors
The managers should have high ethical, honest and have a trustworthy mentality. In this way, they will be accountable and responsible which is a vital requirement for the expansion. The shareholders will rely on them to see a task through meaning they should have a high self-imposed ethical standard. It could be seen through their support on the decisions made at the board meeting, their personal beliefs notwithstanding.
Expansions within a company require minds that think globally. This aspect is important in that it dictates the planning for the long term which is along with the identification of the integral considerations that enhance the attainment of the company goals as well as elevating the status of the company. It also gets to the identification of the factors that enable the exponential growth of the company while motivating and mobilizing all resources towards the goal achievement (Nguyen, 2012, p. 241).
Through this way, there will be the strengthening of the board interactions for the success of the company as well as the enhancement of the value brought to the membership and the management and hence effective corporate governance.
Nguyen, B. D. (2012). Does the Rolodex matter? Corporate elite's small world and the effectiveness of boards of directors. Management Science, 58(2), 236-252.
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