3.2.3 Organic Growth Flashcards

1
Q

Define organic growth?

A

business grow from within - using own resources to produce and sell more

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2
Q

Define inorganic growth?

A

taking over or merging with another company in order to increase output

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3
Q

How do business grow organically?

A

using retained profit or a form of a loan which is invested back into the business to increase production

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4
Q

How can smaller businesses look to expand?

A

Developing a new product
taking products into new markets abroad
using a franchise system

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5
Q

3 adv of organic growth?

A

considered less risky
no reliance on outside agents
keeps business culture

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6
Q

3 disadv to organic growth?

A

slower than inorganic growth
may lead to overtrading
Takes time to rationalise

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