GCSE Business - Methods of Internal Expansion

A very small but detailed revision sheet of the different methods of internal expansion in a growing business.

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Good luck in the summer exams :) .

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  • Created by: Rhys B-M
  • Created on: 31-03-13 13:28
Preview of GCSE Business - Methods of Internal Expansion

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Methods of Internal Expansion
1. A business could increase the production of its current
products and sell in existing markets. E.g. Cool Chocolates
could produce 50% more caramel creams to sell in its
current markets.
2. A business could increase the production of its current
products but sell them in new markets. E.g. Cool
Chocolates could sell its Mystery Sweet selection box in
Ukraine.
3. A business could develop a new product, this could be a
similar product to its current selection ( Line Extension )
or an entirely different product ( Diversification ). E.g. Cool
Chocolates could develop Minty Mints or Pet Food.
Advantages and Disadvantages of Internal
Expansion
Internal expansion is Internal expansion
relatively inexpensive usually takes a
to achieve. substantial amount of
time to achieve visible
growth, some owners
are not prepared to
wait for such a long
time so they try to
grow externally.

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With the exception of
diversification, the
business will have
prior knowledge, and
will be producing a
product that it's
already good at , which
means its more likely
to be successful.…read more

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