1.6 Growth and evolution Flashcards
What is internal growth?
The process of selling more units
What is external growth?
The process of growing and increasing sales by mergers and acquisitions
Examples of a merger
Airfrance and KLM
Exxonmobil
Example of an acquisition
Facebook and WhatsApp
What is horizontal integration?
Merger or acquisition of another company in the same market and same stage in the supply chain.
What is vertical integration?
Mergers and acquisitions of other companies in the same industry/market but different stage in the supply chain.
What is backward integration?
Mergers and acquisitions with a company further away from the customer
What is forward integration?
Mergers and acquisitions with a company closer to customer
What is conglomerate integration?
Mergers and acquisitions with another company in a completely unconnected market to its core business
What is operations?
Investment into new assets
Example of possible operations
factories, shops, online platform
