business growth Flashcards
business growth
Where a business reaches a point for expansion and looks at ways to generate more sales and profit.
2 types of business growth
Organic
External
reasons for business growth
survival
improve reputation
gain market share
increase revenue
reduce completion
reduce/share costs
increase profit
reduce/share risk
Organic Growth
Concerned with the internal growth of the business, as in it grows by increasing its own size rather than taking over another business. This could be done by increasing sales.
4 ways to organically grow
Gaining new customers
Increasing output
Developing new products
Increasing market share
Ways in which organic growth can occur
increasing output
gaining new customers
developing new products
increasing market share
External growth
Concerned with the growing outside of the business with others through mergers or takeovers.
4 types of external growth
Horizontal
Diversification
Backward vertical
Forward vertical
merger
Where two or more businesses agree to join to become one business.
examples
Vodafone and Mannesmann
Exxon and Mobil
takeover
Where a business takes a controlling interest in another business.
examples
Elon Musk and Twitter
Sainsburys and Argos
Disney and Pixar, Marvel, 21st Century Fox (2021).
types of external growth
diversification
horizontal growth
forward vertical growth
backward vertical growth
