Company Growth Flashcards
Company growth
Expansion of the business through either acquisition or merges or organically to increase market share or charge higher prices
Organic growth
Expansion within the business itself based on its own resources rather than expanding through takeover
Inorganic growth
Involves taking over or merging with another business in order to increase output and sales
Mergers
Occurs when two or more businesses join together and operate as one
Takeovers
Process of one business gaining control over another. The business taken over ceases to exist
Integration
The joining of two businesses as a result of a merger or takeover
Horizontal integration
Joining of businesses that are exactly the same line of business
Vertical integration
Joining of businesses that are at different stages of production
Conglomerate
A business that consists of different types of businesses. They will be unrelated to each other for part of the whole group
Joint ventures
When two or more businesses set up a new business which will be operated jointly
Economies of scale
The reductions in average costs enjoyed by the business as output increases
Diseconomies is of scale
Rising costa as a business expands beyond its minimum efficient scale
Growth strategy
The strategy used by a business to achieve an improvement of its position in the market for an increase in its revenue
