With a well established base, the management wishes to maximize the company’s growth by expanding its existing business and by diversifying into other industries.
However, great care must be taken as the company tries to expand. The rising price of fuel and foodstuffs are making significant contributions to inflation. This is a global phenomenon. Rising inflation leads to the implementation of anti-inflationary measures such as increasing interest rates and taxes. Both of these measures have been known to stifle investments. In countries where unemployment levels are high, and in which the mode average disposable incomes are low, anti inflationary measures can lead to recessions as investments become too expensive.
With this in mind, the management must implement strategies which will put the company in a position enabling it to withstand an unfavorable investment climate and harsh economic conditions.
PT. BUANA ESTATE © 2008