Business Growth/Objectives Flashcards
(5 cards)
1
Q
Conglomerate Integration
A
A merger between firms in unrelated business
2
Q
Organic Growth
A
AKA internal growth, when a business expands its own operations, then rely on takeovers and mergers
3
Q
Organic Growth Comes From:
A
Increasing existing production, through investments in new capital & technology
Finding new markets
Growing a customer base
4
Q
Advantages of Organic Growth
A
Less risk, expanding what the business is good at
Avoids diseconomies of scale, workers efficiency & productivity remain high
Affordable, expanding through retained profits
5
Q
Disadvantages of Organic Growth
A
Slow growth
Missed out opportunities, for more ambitious growth
Limited growth, to reliant on sales revenue
