Organic Growth and Inorganic Growth Flashcards
1
Q
What is organic growth
A
- business growing via its own resources, without the use of mergers and acquisitions
2
Q
What are some methods of organic growth
A
- Increasing sales
- Product development
- Market development
3
Q
What are some advantages of organic growth
A
- Controlled expansion / lower risk
- Sustainable growth
4
Q
What are some disadvantages of organic growth
A
- Slower growth
- Limited by firms own resources
5
Q
What is inorganic growth
A
- Growth achieved through external means, M&A
6
Q
What are some methods of inorganic growth
A
- Mergers
- Acquistions
7
Q
Advantages of inorganic growth
A
- Faster expansion
- Access to new resources
8
Q
Disadvantages to inorganic growth
A
- Higher risk, culture clashes
- Costly, significant capital investment can lead to debt
