3.1. Business Growth Flashcards
(6 cards)
1
Q
Why brands stay small
A
- Prestige
- Small market size
- Economies of scale (Lack of cost gains)
- The need for flexibility
2
Q
Why brands grow
A
- Profit maximisation
- Increased revenue + market share
- Economies of scale (cost advantages)
- Diversification
- Managerial factors
3
Q
Organic Growth
A
Own scale of operation
- More staff
- New outlets
- Widening product range
4
Q
External growth
A
Companies growing through mergers, amalgamation, or takeovers
5
Q
Reasons for demergers
A
- Diseconomies of scale
- Value of the firm may be lower combined than singularly
- A focus on core objectives
6
Q
A
