2.1 - Growing The Business Flashcards
What are the methods of business growth?
-Internal growth(organic)
-External growth(inorganic)
What are the ways of internal growth?
-New products
-New markets
What are the ways of external growth?
-Merger
-Takeover
What type of business ownership is suitable for growing businesses?
-Public Limited Company(PLC)
What are some sources of finance for growing businesses?
-Internal Source: Retained Profit and Selling Assets
-External Source: Loan Capital and Share Capital
Why do business objectivs change?
-Legislation=new regualtion may affect the products that the business offer.
-Market conditions=Lots of disposable income and a high demand allows new opportunities for growth for the business.
How might business aims and objectives change when the business is performing well?
The business might focus on:
-Growth
-Entering new markets
-Growing workforce
How might business aims and objectives change when the business is not performing well?
The business might focus on:
-Survival
-Exiting markets
-Reducing workforce
What is the impact of globalisation on businesses?