The management team at National Furniture has critically analyzed the company and the market, and has identified two major areas of risk for the company:

>   Diversion from core competency.

National Furniture is in the process of expansion, and part of this expansion entails the aggressive promotion of it’s newly formed consulting services division, that is already showing signs of substantial potential and growth.  It has been in the business of making and selling fine furniture products for the past seventeen years, and there is the danger that this new and booming service division will grow quickly thereby distracting the company from it’s mission statement of producing fine quality furniture.

>   Implications of fast growth.

Other than adding three persons to it’s consulting division, the company has not grown substantially in number of employees, total gross sales, or production capacities in almost ten years.  The current expansion plans call for rapid growth in both the consulting and furniture sales.  These expansion goals, coupled with the goals for modernizing the production process, will lead to an increased pace of activity.  This increase will have profound implications for the company’s employment possibilities, it’s computer systems, and it’s management structure.  There is a danger of increasing sales orders and accounts faster than the company can adapt to this new environment.