Topic 2.1 Flashcards
Adapting existing products
Finding new products that are based on the original one.
Business growth
Factors allowing a company to expand through higher sales and (usually) higher staff levels.
Organic (internal) growth
Growth from within the business, such as creating and launching successful new products.
Inorganic (external) growth
Growing by buying up other businesses or by merging with a business of roughly equal size.
Mergers
When two businesses of roughly equal size agree to come together to form one big business.
Takeover
Obtaining control of another business by buying more than 50 per cent of its share capital.
Product range
The number of different product types, sizes, colors, and brands offered by a company.
Extension strategy
An attempt to prolong sales of a product for the medium-long term and prevent it from entering its decline stage.
Dynamic nature of business
The idea that business is ever-changing because external factors such as technology are always changing.
