Shareholders Enjoy Growth at Dick's Sporting Goods Assignment - 30

Shareholders Enjoy Growth at Dick's Sporting Goods - Assignment Example As the paper outlines, one of the key successes of Dick's Sporting Goods is the fact that products are stocked according to a local area's seasons. This can reduce costs, which in turn the company can pass onto the customers in the form of cheaper yet high-quality products. Another reason why business has flourished is that Ed Stack has placed key emphasis on the customer experience. For any business that is struggling to establish itself in the marketplace, developing strong relationships with customers is one of the few things that can be controlled. There are so many other variables that can change depending on different factors, but being nice and courteous to customers is something that is attainable. Ed Stack has realized this and the result has been that many repeat customers have been created.  The reason why rapid growth can sometimes be a bad thing for a company is that it has not prepared to expand business operations. Few experts can predict when a company will take off , so when it does it often happens by surprise. This causes the firm to adjust its strategic goals and objectives, and sometimes it does not have long enough to accurately form these. Another reason why rapid growth is not such a good idea is that expenses tend to rise faster than revenue, creating a short-term loss. While this may not prove to be fatal to a company, it can mean that the company has to secure external financing in order to break even and doing this can strain company finances and resources. It is often the case that steady growth is better than rapid growth for the long term because the company can adapt its strategies at a pace that keeps up with the company's growth. Trying to accomplish this feat when the company is expanding rapidly is difficult to do because simple mistakes can cause damage to the company in the long term.