3.2.3 Organic Growth Flashcards
1
Q
what is organic growth
A
growth driven by internal expansion using reinvested profits or loans
2
Q
how can organic growth be achieved
A
- Ansoff’s matrix, market penetration, market development, product development, diversification
3
Q
what are the advantages of organic growth
A
+ the pace of growth is more manageable
+ avoids diseconomies of scale
+ management knows and understands every part of the business
4
Q
what are the disadvantages of organic growth
A
- pace of growth is slow and frustrating
- access to finance is difficult to grow
- struggle to benefit from economies of scale
