organic growth

Question 1

define organic growth

Answer 1

• the business grows from within
• can be either from rising customer demand, launching successful new products

Question 2

methods of organic growth

Answer 2

• increasing the product range
• opening more branches (domestically and internationally)
• taking on more staff

Question 3

advantages of organic growth

Answer 3

• cheaper than merging = less strain on cash flow = minimizing financial risk
• proving a secure career path = opportunity for staff to get promoted
• keeps the company culture
• planned strategically = leads to more sustained growth

Question 4

disadvantages of organic growth

Answer 4

• long period between investment and return
• growth may be limited
• can miss out on rapid opportunities
• lack of knowledge of new markets/ countries
• difficulties scaling to match competitors who use takeovers