7 Business activity : Growth Flashcards Preview

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Flashcards in 7 Business activity : Growth Deck (10):
1

What is organic growth ?

The growth of a business internally by increasing sales of products and services .
It is internal because it's increasing its own size

2

Organic
.............. ...........of existing products

Increasing output of existing products - building / extending factories , extra staff , new machines

3

Organic
Gaining new .........

Gaining new customers - reducing prices , shops in new places

4

Organic
.............. new products

Developing new products - appeal to a wider range of customers

5

Organic
Increasing ............ ............

Increasing market share sells more but the market is the same they increase

6

ways a business can grown externally
M.........

Merger - 2 or more businesses decide to join together to form la larger business
Growth

7

ways a business can grown externally
T............

One business buys control over another . For a limited company this means buying 51 or more %
Hostile and friendly

8

Type of merger and takeover
H............

2 businesses join together that are similar eg .two furniture businesses
Bigger business will control more

9

Type of merger and takeover
Vertical

Merge or takeover a business it supplies (forwards)or that is supplies it with goods (backwards)

10

Type of merger and takeover
Diversification

Merges or takes over a business with no real connection
Spreads risk however there can be a lack of knowledge