TYPES OF GROWTH

Question 1

what do startegic methods refer to

Answer 1

Refer to different startegies a business might pursue to reach its objectives

Question 2

changing scale - a bs may increase its scale by …

and this is a

Answer 2

growing

common bs obj

Question 3

state 4 reasons why growth is important

Answer 3

SHOWS PROGRESS :Good for managers in terms of own careers and in terms of showing sh why theyre valuable - can also provide a sense of achievement which relates to maslow self actualisation needs

Can create finanncial benefits such as higher revs and lower unit costs

Creates momentum which cna be important - e.g means new opps for employees which can help keep em focused and engaged. People can feel a aprt of something that works and thats growing rather than shrinking

Brings benefits such as more market power and lower costs due to bargaining power

Question 4

what is organic growth

Answer 4

when bs grows through expanding its own operatios

Question 5

give 2 examples of ways you can grow organically

Answer 5

increase sales of exisiting products

launches new products for its customers

Question 6

external growth is

Answer 6

grwoth by joining with other bs through mergers and takeovers

Question 7

takeovers aka

Answer 7

acquisitions

Question 8

what is a teakeover

Answer 8

owners of company A gain a ownership of the majority of shares of company B and now control it

Question 9

what are the two ways you can access a takeover

Answer 9

cash offer

paper offer

Question 10

what is a cash offer

Answer 10

buying shares with money - when doing a takeover

Question 11

what is a paper offer

Answer 11

Offering shares in their own business in return for shares in the target business

Question 12

what is a merger

2 points

Answer 12

when one bs joins with another ,

owners of company b and a become joint owners of a new org

Question 13

many big bs grow by adding on new bs through mergers and takeovers

Answer 13

t

Question 14

give exampke of big bs that continue to grow through mergers and takeovers

Answer 14

google and intel have inbetween them bought more than 500 firms in past 5 years

Question 15

what does exteral growth cause in terms of scale of the bs

Answer 15

immediate jump in the scla eof the bs

Question 16

why does external growth lead to an immediate jump in the sclae of the bs

Answer 16

once deal is completed the old bs has a new business as part of it and is immediately bigger - meaning a sudden increase in its size

Question 17

organic growth tends to be

Answer 17

slower

Question 18

why does organic growth tend to be slower

Answer 18

the bs gradually increases the scale of its operations

Question 19

true or false bs can grow organically very quickly

and give an example

Answer 19

true

tech world where one idea can rapidly gain sales i.e facebook and google who are relatively young

Question 20

organic growth usually doesnt involve the same … that happens with external growth

Answer 20

sudden change in scale

Question 21

external growth particularly will bring problems of coping with a quick increase in waht 2 things

Answer 21

coping with a quick increase in

the number of employees
and scale of operations

Question 22

rapid growth of any form brings with it

Answer 22

managment challenges

Question 23

external grow encounteers problems of bringing together otganisations that may have their own ways of (2)…..

Answer 23

their own ways of

doing things and their own priorities

Question 24

External growth also encounters problems of bringing together organisations that may have their own ways of doing things and their own priorities
give a negative of this

Answer 24

Can lead to a culture clash

Question 25

in terms of negatoves of external growth what is a culture clash

Answer 25

clashes due to different styles and priorities and different ways of doing things

Question 26

what is a negative of a culture clash + example

Answer 26

can lead to poor performance

in a number of big mergers and takeovers such as MySpace and news corporation

Question 27

what can lead to disagreeements that can prevent organisaions functioning effectivley

3 points

Answer 27

Different styles of management ,
priorities
different ways of rewarding snd motivating staff

Question 28

what was the culture clash between my space and news corporation

Answer 28

Big croproate bs with strategic plans , committes and clear financial targets - news coroporation

met with an org that was less formal , more interested in creativity than financials and younger in outlook and approach my space

Question 29

overal what 2 things does internal growth tend to be

Answer 29

slower

easier to manage

Question 30

to summarise what 2 things does external growth tend to cause

Answer 30

sudden changes in scale

clashes in the way org operate

Question 31

what are the potential benefits of growht

Answer 31

economies of scale

economies of scope

synergies

experience curve /effect