Inorganic Growth Flashcards
1
Q
What is inorganic growth?
A
When a business wants to grow quickly and can be achieved by two different ways
2
Q
What is a merger?
A
When two businesses merge and become one
3
Q
What is a takeover?
A
When one business takes over another business buying more than 50% of the shares
4
Q
What are the advantages of inorganic growth?
A
- Economies of scale
- Increased revenue and market
- Buying technology
- International expansion
5
Q
What are the Disadvantages of inorganic growth?
A
- Clash culture
- Possible communication problems
- Unreliable merger partners
- Diseconomies if scale
