3.2.3 Organic Growth

Question 1

What is organic growth?

Answer 1

Internal expansion thru using reinvested profits or loans

Question 2

How is organic growth generated (5)

Answer 2

1. greater market share
2. product diversification
3. opening new stores
4. International expansion
5. investing in new technology/production machinery

Question 3

Advantages to organic growth? (4)

Answer 3

1. Growth is sustainable
2. Less risk
3. Avoid deos
4. Management has thorough understanding on business

Question 4

Disadvantages to organic growth? (3)

Answer 4

1. Growth can be too slow
2. Not as much eos as you could get
3. Limited access to finance to fund internal growth

Question 5

What tool can be used to explore organic growth techniques?

Answer 5

Ansoff!

Question 6

Example of Apple organically growing?

Answer 6

Expanding into china and India