P2 Hw 26- Organic Growth Flashcards
1
Q
Organic growth
A
Business grows from within
2
Q
Inorganic growth
A
Growth from outside the business
3
Q
Organic growth: methods
A
- new product launches
- opening new stores
- expanding foreign markets
- expansion of workforce
- franchising
4
Q
Advantages of organic growth
A
- less risk
- cheaper
- retain company culture
- can be planned
- higher production scale - EoS
- greater market influence and higher prices
5
Q
Disadvantages of organic growth
A
- lots of capital required
- long time between investment and return
- growth may be limited
- new markets and countries can be dangerous to enter without links
6
Q
Types of inorganic growth
A
Merger
Takeover
