Internal and External growth
Internal growth occurs when a business expands by:
- Increasing the number of goods it can produce, for example by buying more or better machinery.
- Developing new products
- Finding new markets for their products
Although internal growth is often quite slow, it avoids some of the problems of external growth.
External growth takes place when a business merges with or takes over another business in the same or different industry. The process is know as intergration.