Business Expansion Flashcards
Organic growth strategies
Increase sales
Franchising
Inorganic growth
Strategic alliance
Merger
Takeover
Reasons for business expansion
Psychological
Defensive
Offensive
Psychological reasons
Ambition
Challenge
Defensive reasons
Economies of scale
To protect supplies
To protect distribution
Diversification
Offensive reasons
Eliminate competition
Asset stripping
TO acquire new products
To increase profits
Types of finance for business expansion
Equity capital
Retained earnings
Debt capital
Grants
Contrast Debt and Equity Capital
Control Dividends Bankruptcy risk Collateral Deductible tax Permanent
'’CDB and CDP’’
Factors to consider when choosing finace
Cost
Security
Control
Tax Implications
Importance of business expansion
Increased tax revenues
Increased employment
More advantages to other business (spin off effects)
Lower cost of living
Importance of Irish business Expanding Abroad
Increased employment
Balance of Payments
Import Payments
International Relations
How does business expansion affect the business
Short an long term
Share price Products Profits Organisational structure Product mix Employment
