1.6 Business Growth Flashcards
What is another word for internal growth?
organic growth
List 4 ways a business can grow organically?
Increase output
Gain new customers
Increase market share
developing new products
How can a business gain new customers?
reduce its price
open new shops
better marketing
What is internal growth?
When a business expands without taking over or merging with another business.
What is a merger?
2 or more businesses agree to join to become 1
What is External growth?
Growth from a merger or takover
What is a takover?
When a business buys more than 50 percent shares in another meaning they have control
What is horizontal growth?
a merger or takover with 2 businesses in the same market like lidl and aldi
what is diversification?
when a business merges with or takes over another business of which it has no connection in like a book store and a mexican takeaway store
what is backward vertical growth?
when a business merges with or takes over another business that supplies it like a furniture shop taking over a timber merchant.
what is forward vertical growth?
when a business takes over or merges with a business they supply to like a timber merchant taking over a funiture shop.
