Problem Identification in Business

Business growth is one of the essential components of a successful company. However, it is also known to be associated with a number of underlying problems. The following paper provides an overview of problems associated with office expansion and outlines its importance for arriving at a meaningful solution.

Issue Summary

The issue was observed in a small company that underwent substantial growth in the recent years. After a number of newly introduced tasks, it became apparent that the current location was only marginally sufficient for the planned growth, and will become insufficient for housing the company operations by the end of the year. Thus, the necessity has emerged to find a new location that would provide space and infrastructure necessary for normal functioning of the company. Since the company has surpassed the growth rate that was projected initially, the decision was made to review the expected growth trajectory and select a location that would comply with the predicted requirements for the duration of at least eight years.

Problem Identification

During the planning phase of the relocation, it became apparent that the expansion posed several major difficulties. The most significant one was associated with the restrictions posed by hardware limitations. The business operations of the company rely heavily on the use of personal computers and the utilization of servers necessary for effective functioning of the services provided to the customers.

Both require a certain amount of space, which limits the choice of options for expansion. The availability of infrastructure is another underlying issue that needs to be addressed (NSC, 2016). In addition to the communication with the customers, which is conducted primarily through the Internet, the quality of the company’s services is determined by the availability of the connection of sufficient bandwidth and reliability.

Underlying Problem

The disruption of workplace routines and quality of service by the space and infrastructural restrictions is the underlying problem associated with office expansion. Due to the growing reliance on devices with computation and connectivity capabilities, this problem may not be immediately apparent to the company management. Relocation to a more suitable office is more readily associated with evident aspects such as legal issues, interior design, and communication with suppliers, equipment vendors, and business partners (Lovering, n.d.).

As a result, the issues with a new office may not become immediately apparent until later in the course of actions. It is also important to note that despite the seemingly secondary priority of the issue, it may be difficult to address in the long term and pose a substantial barrier to employee performance.

Relation to the Problem

Office expansion through relocation is a recognized issue in the business domain. According to consensus, decisions made during the expansion are typically correlated with labor considerations, distance between old and new locations, and overall climate in the company, whereas the concerns associated with the suitability of communication and infrastructural compatibility were either assigned secondary importance or omitted entirely (Opasanon & Lertsanti, 2013). It should also be mentioned that while the effects on employees, such as organization of personal space in accordance with the conditions in a new location, are reported as adverse outcomes of the issue, they are rarely acknowledged at the planning stage (Koster & Venhorst, 2014).

Conclusion: Importance of Defining the Problem

As can be seen, the underlying problem poses several threats to the company’s performance. Thus, the recognition of the issue at an early stage of expansion may be useful in the process of choosing options for relocation. In addition, it will identify the possible barriers to seamless functioning and, by extension, provide the solutions that could mitigate or prevent the ones that have the most negative effect.


Koster, S., & Venhorst, V. A. (2014). Moving shop: Residential and business relocation by the highly educated self-employed. Spatial Economic Analysis, 9(4), 436-464.

Lovering, C. (n.d.). Risks of relocating a business. Web.

NSC. (2016). Technology infrastructure upgrading and business relocation. Web.

Opasanon, S., & Lertsanti, P. (2013). Impact analysis of logistics facility relocation using the analytic hierarchy process (AHP). International Transactions in Operational Research, 20(3), 325-339.

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