3.2.3 Organic Growth Flashcards
1
Q
Define organic growth
A
The process of business growth which comes from within the business, as opposed to mergers and takeovers
2
Q
Define inorganic growth
A
When a business has grown by buying its way into being larger, for example, through a merger, takeover or joint venture
3
Q
What are the methods of organic growth?
A
1. New product launches
2. Opening new branches
3. Expanding into foreign markets
4. Expansion of the workforce
4
Q
What are the advantages of organic growth?
A
- avoids the risks of merging with another business
- cheaper than merging
- retains the company culture
- higher production = EOS
5
Q
What are the disadvantages of organic growth?
A
- high risk
- growth may be limited
- growth depends on reliability of sales forecast
