Business Risk Analysis: Oymel's Expansion Plan

Olymel Should Expand
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Olymel Should Expand
Should Olymel Proceed with the Expansion?
Olymel should proceed with its expansion plan without hesitation. Businesses that hesitate to grow or expand their operations when an opportunity exists are vulnerable to being overtaken by their competitors (Hieu, Van, Doanh, 2021). Olymel should understand that Canada is renowned for its high-quality pork products. For instance, in 2018, the country was ranked the seventh-largest pork producer worldwide. More than 70% of Canadian pork products were exported to over 100 countries globally. Canada exported over 1.28 million tons of pork products in 2017, valued at over 4 billion Canadian dollars (Case & Wilson, 2020). Since Olymel is the biggest pork processing enterprise in Canada, it has resources and a supply chain that can withstand the firm’s expansion internationally. If the company fails to expand, it will be only a matter of time before another Canadian pork producer takes that opportunity.
However, there exist business risks associated with a company’s expansion. Olymel should try to alleviate these challenges, namely financial loss, poor product quality due to increased production, instability, and ineffective management. The more a firm grows and expands, the more managing it becomes challenging. Casey Smit, the vice president of Olymel and swine production in Western Canada, should ensure that Olymel continues to provide high-quality pork products even as the company keeps expanding. For instance, Olymel should hire more employees and managers. New workers should be sent to existing branches to acquire experience. Highly experienced employees and managers should be the ones to be sent to newly opened branches. Notably, based on Olymel’s performance history, partnerships, entrepreneurially-oriented model, and acquisitions, expanding does not pose new challenges. Nevertheless, Smit and his team should analyze whether the company should own the finishing barn or contract it from a third party based on the financial projections. 
What is the Company’s Strategic Course of Action?
Olymel’s strategi...