3.2.3 organic growth Flashcards
1
Q
organic growth
A
the business has growth from within
2
Q
inorganic growth
A
business has grown by buying its way into being larger
merger, takeover
3
Q
methods of growing organically
A
new product launches
opening new stores
expanding into foreign markets expansion of the workforce
4
Q
advantages of organic growth
A
avoids the risks and pitfalls of merging with another business
cheaper than merging
retains company culture
can be planned for unlike a takeover
5
Q
disadvantages of organic growth
A
high risk strategy
long period between investment and return on investment
growth may be limited and is dependent on reliability of sales forecasts
