Growth/ retrenchment Flashcards by Tee 322 | Brainscape

Q

Define growth

A

Expanding the size of a business by increasing the number of products sold

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Q

Provide some reasons why firms want to grow

A

Benefit from economies of scale
increase capacity utilisation (fc = as they operate on a bigger scale)
market dominance E.g. Colgate having a broad portfolio

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Q

Define retrentchment

A

A business scaling back on activities

Maybe to survive a recession

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