Business Studies Unit 3 topic 4

Company Growth - expansion internally or externally 

Why grow?

• Increases profit
• Achieve market leadership status/high market share
• Control of outlets/ suppliers
• Reduce dangers of takeover
• Remain competitive 
• Obtain benefits of synergy

Types of Growth:

1. Organic (Internal) - by setting up new outlets, factories, offices; expanding existing business:

• Slow
• Safer than inorganic
• Too much reliance on organic growth can lead business to its out on good deals that can make profit 

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