3.2.3 Organic growth

Question 1

What are the pros of organic growth?

3

Answer 1

• Easier to manage growth (prevent overtrading)
• > Disruptive change, ^efficiency, productivity, morale
• Financed through prof, >risk

Question 2

What are the main disadvantages of organic growth?

2

Answer 2

• Miss opportunities for ambitious growth (surge in industry) - fail to have sufficient capacity
• Stagnant market = find new market (link to Ansoff)