Growth that takes place within a business without any reference to any other business. The purpose of internal growth is to make the business become bigger and stronger.
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What is External Growth
Much faster type of growth and involves the bringing together of a number of organisations to form a single business.
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What are the types of external growth?
They are franchising, takeover, merger and integration.
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Explain Franchising
A popular method by which companies expand their operations and open shops in various in parts of the country. An example of this is McDonalds
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Explain Takeover
When business buys over the control of another business. Takeovers frequently are hostile and are not welcomed by the firm which is being taken over.
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Explain Merger
A voluntary and agreed joining of two firms in order to form one larger business. It can be seen as the marriage between two businesses
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What are the types of integration?
Horizontal, vertical (backward vertical and forward vertical) and lateral intergration
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Other cards in this set
Card 2
Front
What is External Growth
Back
Much faster type of growth and involves the bringing together of a number of organisations to form a single business.
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