3.2.3 Organic growth

Question 1

define organic growth

Answer 1

internal growth/steady growth in business

Question 2

organic growth examples

Answer 2

-open new stores
-advertising
-enter new markets
-product diversification
-international expansion
-investing in new tech/product machinery

Question 3

define inorganic growth

Answer 3

external growth (can be become big overnight)

Question 4

inorganic growth examples

Answer 4

merges (curry’s + pc world)(Sainsbury’s + Argos)
takeovers (Facebook buying insta + WhatsApp)

Question 5

advantages of organic growth

Answer 5

-increased cost
-reduced financial risk

Question 6

disadvantages of organic growth

Answer 6

-slow process
-difficult to achieve

Question 7

advantages of inorganic growth

Answer 7

-different range of ideas/culture
-acess to new tech

Question 8

disadvantages of inorganic growth

Answer 8

-also buy companies debt risky
-losing focus