3.2

Question 1

what is a take over (aquasitions)

Answer 1

when one business buys enugh shares in another so that is has more then 50% of the total shares

Question 2

organitc growth pros () cons ()

Answer 2

pros:
- less risk as its financed using profits
- less diruptive to workors
∴no loss in workor productivity and moral stays high

• as it is slower the firm can adapt ti the growth better

cons:
- takes long time to grow
∴may fall behind competetors in growth
↓comp advatage in thing like Eos

• restricted to increase in market size

Question 3

inorganic growth pors cons

Answer 3

pors:
- quick
↑Eos faster then competetors
↑comp adv

• ↓competetors (horizontal)
• ↑power over consumers/supplyers
• ↑price can charge
• ↑contrbution per unit
• ↑profitibilyty

cons;
- diffrent objectives / culture clash of firms
staff no longer feel recognised as they are forced to change how they do things
↓moral (maslow - self esteem)
↓productivity

• duplicate role lead to high reduntency
  ∴high redundency costs
  or
  ∴↓job securety
  ↓moral (maslow - safty)