Organic Growth Flashcards
1
Q
Organic Growth
A
Organic growth is the growth from within a business
2
Q
Organic growth examples
A
Opening new stores
Launching new products
Employing new workers
3
Q
Advantages of organic growth
A
Less risky compared to external growth
The growth is more stable and is easier to control
Growth at sensible rate
Can be financed through sustained profits
4
Q
Organic growth disadvantages
A
Growth can be limited as it is slower( share holders won’t like as they want dividends payments)
Less likely to grow in a small and shrinking market
Less likely for growth for dominant leader( as already well known and majority of coustomers shop there )
