3.2 Organic growth Flashcards
1
Q
Organic growth
A
Involves expansion within the business.
2
Q
What is organic growth generated by?
A
Gaining greater market share
Product diversification
Opening a new store
3
Q
Specific examples of organic growth
A
New products
New locations
Exporting
4
Q
Inorganic growth
A
Involves growth from outside the business.
5
Q
Inorganic growth examples
A
Takeovers
Mergers
Joint ventures
6
Q
Advantages of organic growth
A
Pace of growth is manageable
Less risky than external as growth financed by profits
Avoids diseconomies of scale
7
Q
Disadvantages of organic growth
A
Pace of growth can be slow and frustrating
Not neccesairly able to benefit from economies of scale
Access to finance may be limited
