Patty Stone owns an industrial equipment company named Get Smart Industrial that sells three products in the oil services industry. Get Smart’s products are sold via a direct sales force. Patty wants to grow the firm by adding new products but has run into resistance from her chief financial officer (CFO), who argues that adding new products will increase inventory costs and place a strain on the company’s cash flow. While Patty is sensitive to her CFO’s concerns, what arguments can she make in favor of adding new products as a way of effectively growing her firm?
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