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Business Expansion

Internal Growth  - Growth from within the business (also called organic growth)

- Increasing sales

- New technology

- Widening product range

- Winning a larger share of main market


External Growth  - Growth by combining with other businesses


- Merge with other businesses

- Takeover other businesses


Economies of scale -  Cost benefits from growth


- Ability to buy in bulk

- Save money on transport


Diseconomies of scale  - Cost disadvantages from growth


- Breakdowns in communication

- Management being seen as far removed from the workers


Methods of Growth:


- Franchise

- One business sells the right to use its successful business format to another business

- Buy the right and pay a percentage of its profits as a royalty

- Some businesses don’t try to grow

- More concerned about survival

- Reaching objectives without expansion


Stakeholder conflict


- Stakeholders have a stake in the business

- Stake can be affected by the decision to expand


Internal Stakeholders  - those who are directly linked to the business, such as owners and employers


- Rely on business for their income




alright tbh

just need to put more information on it



this is ****

Liam Burns


sam wrote:

this is ****

Hey Sam! You're ****!



Good just need a bit more information.



Useful but  needs more information

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