2.1 - Growing The Business

Question 1

What are the two types of growth?

Answer 1

Internal (organic) and external (inorganic)

Question 2

What is internal growth and examples of it?

Answer 2

Business expands its own activities

• new customers
• new technology/ e-commerce
• other countries
• change marketing mix

Question 3

What is external growth and examples of it?

Answer 3

Usually involves merging or taking over another business

VERY EXPENSIVE

Question 4

What is economies of scale?

Answer 4

As a business grows and sells more it’s costs will increase but at a slower cost due to bulk buying and manufacturing

Question 5

What does globalisation mean?

Answer 5

The world becoming more connected (easier for businesses to import and export)

Question 6

How do ethical issues effect a business?

Answer 6

Some countries allow unsafe working conditions, unfair pay and very long hours.

Reduces costs but customers way not like it

Question 7

What effect do environmental influence have on business?

Answer 7

Businesses can reduce impacts by reducing noise, air and water pollution as well as waste products

Good brand name but costs more