A large furniture retailer in Europe has just entered the installation services business. Their staff would go to the customer's location for an additional fee and install the products bought at their retail shops. Currently the company has revenues of about Euro 10 billion and the company had previously grown through some key acquisitions. Revenues are expected to grow at 10% every year. They want theA large furniture retailer in Europe has just entered the installation services business. Their staff would go to the customer's location for an additional fee and install the products bought at their retail shops. Currently the company has revenues of about Euro 10 billion and the company had previously grown through some key acquisitions. Revenues are expected to grow at 10% every year. They want their home installation services to be 20% of their revenues in 5 years from now. To expand they are considering three options — Internally build capabilities by hiring people, start Franchises, Acquire other installation companies. What should they do to expand? You don't have any other data or information.

Calculate how big the installation business should be in 5 years.

What criteria would you choose to compare among the three options?

Develop your hypotheses