How To Peruse Stratagies Flashcards
1
Q
How can growth occur
A
Growth can occur organically or externally
2
Q
When does organic growth occur
A
Organic growth occurs when a business expands its own product portfolio or its number of retail stores
3
Q
What is an example of a businesses experiencing organic growth
A
Tesco introducing Tesco Mobile is organic growth
4
Q
When does external growth occur
A
External growth occurs when a business expands by purchasing or taking over other businesses
5
Q
What is an example of external growth
A
Morrisons purchased Safeway which is external growth
6
Q
What’s the impact of growth on a business
A
- Increased demand for goods and services
- Increased motivation for the management
- Increased market share, sales revenue, and profit
- Investment increases the need to secure capital
- There can be an increased focus on marketing and promotion
