Growing a business Flashcards
How can business growth occur
employing more people; opening more branches; increasing sales/revenue; increasing profits
whats organic growth
when a business expands from within
whats innovation
The act of creating new products or processes.
how can a business attempt to enter new markets
entering overseas markets; amending its marketing mix; taking advantage of technology
what is a domestic market
The supply and demand of goods and services within a single country
what is an advantage of internal growth
low risk, more sustainable
what is disadvantge of internal growth
slow
what are 2 types on external growth
merger (2 businesses form into 1), takeover (an existing business expands by buying more than half the
shares of another business)
what is advantages of external growth
quicker, may get rid of competition, new ideas/expertise
what is disadvantages of external growth
clash of culture, increased costs (short term)
what are PLC’s
public limited companies-
shares are sold to the public on the
stock market
what are advantages of PLC’s
limited liability
what are disadvantages of PLC’s
expensive to set up, greater risk of hostile, rival takeover
internal sources of finance
retained profits, selling of assets, the owners savings
what is advantage of using retained profit as a use of internal finance
cheap, quick and convenient, and there is easy access to the money
