2.external Influences Flashcards
1
Q
Organic growth
A
- opening new stores
- launching new products
- employing more workers
- launching existing products into new markets
- investments in technology
2
Q
External growth
A
- merger or acquisition
- joint venture overseas
3
Q
External growth cons
A
- could result in redundancies
- could result in higher prices
- extra debt took on
- dominant business
- may suffer from diseconomies of scale
4
Q
Organic growth pros
A
- less risky than external
- could be financed by retained profits
- is a sensible/ steady way of growing
5
Q
Organic growth cons:
A
- growth rate could be slow to satisfy shareholders
- will be difficult to achieve if the market is not growing or shrinking
- hard to achieve market share if the business is a current leader
6
Q
Physical market
A
Face to face. Customer walks into shop, employees are encouraged to provide a great customer service.
