Business Growth Flashcards
What is business growth and how is it carried out
Business growth is hkw a business develops and can be done internally or externally
Why is it important
Profit, market share and revenue
How does it happen
Employ more people, open more branches, increasing sales
Internal growth
When a business expands on its own acrivities
Organic growth may also
Enter new markets or develop new products
Three wys a business can enter a new market
Overseas market, amend marketing mix, advantages of technology
Adv of internal
Low risk, high production, no interfearence qith stakeholders
Disadv of internal
Slower
External examples
Mergers and takeovers
Merger and takeover methods
Horizontal, foward vertical, backward vertical
Benefits of being a big firm
Large firms benefit from economies of scale which reduces the average cost of making one product
What are diseconomies of scale
When the average cost of one product goes up because its so big and its harder to manage
