the growth of businesses

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  • business size
    • business growth
      • internal expansion
        • increased advertising
        • increased sales
        • use of retained profit
        • bank loan
        • increase in output
        • increase of efficiency
        • increased competitiveness
        • this occurs when a business expands its existing operations
      • external acquisition
        • mergers
          • this is when the owners  of two businesses agree to join together to make one business
        • takeovers
          • this is when one business buys out the owners of another business which then becomes part of the 'predator' business
        • horizontal integration
          • this is when one firm merges with or takes over another one in the same industry at the same stage of production
        • vertical integration
          • forward
            • this is when one firm merges with or takes over another one in the same industry but at the next stage of production
          • backward
            • this is when one firm merges with or takes over another one in the same industry but at a previous stage of production
        • conglomerate integration
          • this is when one firm merges with or takes over a firm in a completely different industry
    • reasons for staying small
      • the type of industry the business operates in
      • the market size
      • the owners' objectives
  • the market size

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