growth Flashcards
what is one objective of growth
EOS
economies of scale
name 5 objectivs of grwoth
E0S
increased market share and brand recognition
increased product potfoli
increased profitbaility
problems arising from grwoth
diseconomies of scale due to growing too fast
why may a business wanting to grow get diseconimes of scale
bad communication/bad heriarchy
bad ccordiantion
culture clash
what is communcation bottleneck
where communcation slos down through misundertadning or deliberate resistance
why is overtrading a dis and what is it
promising demands for goods but cant make them quick enough
merger
two commpanies come totgther into a single enittiy
takeover
one company qcquires control over another
reasons for merging or takeover
increased makret share
assess to new techboloy
assess to more custoners
access to staff
what is horizontal integaration
merging with snother compay at same stage of production proecss
vertical integration
merging with another company at differernt stage of producion porces
distinction between inorgainic and organice grwoth
organic grwoth
growht from within
adv-less risky as still have control
operating within your company
less expensive in short term
dis-slow process
risk of lost sales if compeition merge togetrh
inorgnic growth
growth from outside of business e.g merger or takeover
adv-quicker growth
synergy-becomes bigger
dis-culture clash
may stop them as become too big
ainsoff matrix
market penetraion-low risk
product orientation
market orinetion
diverstiication
