Business growth Flashcards
1
Q
Examples of growing a business internally
A
Change in ownership
Opening new stores
Producing new products
Suppliers
2
Q
What is a backwards vertical takeover?
A
A shop taking over the raw material supplier
pay less for supplies
more control over supply chain
3
Q
What is diversification?
A
businesses in unrelated markets join through a takeover or merger. This enables businesses to spread their risk over a wider range of products and services as if a market falls you have another market
4
Q
What is forward vertical takeover?
A
when a business takes control of another business that operates at a later stage in the supply chain.
5
Q
What is horizontal takeover?
A
when two competitors join through a merger or takeover
