1.6 Business Growth Flashcards
1
Q
What is Organic Growth?
A
Internal growth using own resources.
Opening more shops.
2
Q
What are examples of Organic Growth?
A
Increasing output: selling more products.
Gaining more customers: reduce the price, open more shops.
Developing new products: to target a wider range of customers.
Increasing market share: selling more than competitors.
3
Q
What is External Growth?
A
Where two business’ merge together or one takes control of the other.
4
Q
What is Horizontal Growth in External Growth?
A
Two business’ in the same production sector joining together.
5
Q
What is Vertical Growth in External Growth?
A
Two business’ in different production sectors joining together.
6
Q
What is Diversification in External Growth?
A
Two business’ coming together with no connection.
