Hgu Plc Business Strategy Essay

Shareholders are people who mainly focus on three expectations which can have in a business: High rate of investment return, sustained and increased growth and increase share value. As HGU plc grow a business organically based on growing their customer numbers at the expense of short-term profitability and continue creating a cash outflow, there are three possible effects HGU plc’s strategy could have on its shareholders:

• High rate of investment return
With the organic growth, this strategy is seen as more profit along with a better investment return. It measures the amount of return on investment relative to the cost of investment which all shareholders are seeking high investment return. However, the company seems to continue creating