Cost-Benefit Study of an Expansion for Gruzavik Huesca S.L.
Khachatryan Sirakanyan, Hayk (2020)
Avaa tiedosto
Lataukset:
Khachatryan Sirakanyan, Hayk
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202003022929
https://urn.fi/URN:NBN:fi:amk-202003022929
Tiivistelmä
This thesis focuses on studying and analyzing the cost and relative benefits of a business expansion for the commissioning company, Gruzavik Huesca S.L., based in Spain. The re- search aims to provide the commissioning company with a recommendation on the most appropriate strategy and location for the business expansion.
The theoretical framework presents all the required background information in order to pro- vide a consistent and high-quality recommendation. The framework consists of financial theory covering financial management essentials, financial statements, and financial state- ment analysis. The theory also covers the different business expansion methods the com- pany can potentially use, followed by academic theory concerning the planning and man- aging stages of business growth.
This research involves both qualitative and quantitative research. Financial statements from the commissioning company were analyzed and interpreted. Multiple theories were studied through secondary research, and a qualitative face-to-face interview was also con- ducted providing primary research. Factor-rating analysis was also used to choose be- tween locations. The results from said research are presented in a separate chapter in the thesis.
The key findings show that Gruzavik Huesca is financially stable and ready to take on a business expansion. The most appropriate method proves to be of geographic expansion. The research yielded Barcelona and Valencia as the most appropriate locations for the ex- pansion of Gruzavik Huesca to a second facility. All this information will serve Gruzavik Huesca when it decides to trigger such expansion.
The theoretical framework presents all the required background information in order to pro- vide a consistent and high-quality recommendation. The framework consists of financial theory covering financial management essentials, financial statements, and financial state- ment analysis. The theory also covers the different business expansion methods the com- pany can potentially use, followed by academic theory concerning the planning and man- aging stages of business growth.
This research involves both qualitative and quantitative research. Financial statements from the commissioning company were analyzed and interpreted. Multiple theories were studied through secondary research, and a qualitative face-to-face interview was also con- ducted providing primary research. Factor-rating analysis was also used to choose be- tween locations. The results from said research are presented in a separate chapter in the thesis.
The key findings show that Gruzavik Huesca is financially stable and ready to take on a business expansion. The most appropriate method proves to be of geographic expansion. The research yielded Barcelona and Valencia as the most appropriate locations for the ex- pansion of Gruzavik Huesca to a second facility. All this information will serve Gruzavik Huesca when it decides to trigger such expansion.