3.2.3 Organic growth

Question 1

External Economies of Scale

Answer 1

Industries in one small geographical area could mean all suppliers being in one place and the range to choose from can improve quality and reduce prices

Question 2

Horizontal integration

Answer 2

Combining with another business in the same industry & stage of the production process eg. A retailer buying another retailer

Question 3

Vertical integration

Answer 3

Same industry but different stage of the production process, eg. Buying a cow farm as a producer of milk cartons

Question 4

Organic growth

Answer 4

Less risk, maintain management style & culture, although can take a long time and might miss out on ambitious growth opportunities

Question 5

Organic growth

Answer 5

Less risk, maintain management style & culture, although can take a long time and might miss out on ambitious growth opportunities