organic and inorganic growth Flashcards
1
Q
what is organic growth?
A
expansion from within a business, might be opening new stores, employing more staff and selling more of the same product
2
Q
What is inorganic growth?
A
Expansion through merging or taking over another business, could also be joint ventures
3
Q
What are the benefits and drawbacks of organic growth?
A
less risk of a takeover, financed internally, grow at sensible rate
hard to manage franchises, dependent on growing market, shareholders may want more rapid growth
4
Q
What are the benefits and drawbacks of inorganic growth?
A
New knowledge and resources, wider product range
expensive, employees resist, may fail
