Organic and Inorganic Growth Flashcards
1
Q
What is Organic growth?
A
Internal growth
Doesn’t involve any other businesses
Slower and more gradual
2
Q
What is Inorganic growth?
A
External growth
Can happen through mergers or takeovers
Takeovers = more than 50% of the total shares = controlling interest, always win in a vote of all shareholders
Quicker
Can allow business to access new markets = potential strategic/tactical decision
Can be horizontal = same stage/industry
Can be vertical = same industry but at a different stage of the production process
