Impacts Of Growth

Question 1

Innovation

Answer 1

used for scientific research which is the process of using the design mix to improve the product, for example improving the appearance of a car by having metallic paint, increasing their chance of selling more custom and therefore raising more revenue, and increasing their market share.

Question 2

Control

Answer 2

Control helps a business by having a firmer grip within the market. The more a business increases in size the more their opportunity to control their supplies, eg. a Vertically integrating (inorganic growth) with a supplier means the can control their costs and therefore their prices. Leading to increased opportunity for the customers to buy from them rather than their competitors.

Question 3

Market share

Answer 3

The ability to control a large portion of the segment

Question 4

Reduce competition

Answer 4

Differentiation leads to a competitive advantage. Larger size,means more revenue and more revenue enables more ability to differentiate

Question 5

Economies of scale

Answer 5

Bargaining power due to ability to reduce costs

Question 6

Accessing new skills and knowledge

Answer 6

Especially with inorganic growth

Question 7

Risking spreading

Answer 7

Especially with economic growth

Question 8

Access to new markets

Answer 8

both inorganic and organic growth