business studies

HideShow resource information
  • Created by: 09NasirA
  • Created on: 30-01-14 18:24
Types of organic growth
offer franchise to another business
1 of 19
Another type of organic growth
expanding business through the internet
2 of 19
Another type of organic growth
opening a branch,office or factory in another location
3 of 19
advantages of organic growth
Less risky than merging or taking over a business
4 of 19
another advantage of organic growth
do not need to borrow loans or sell shares to pay for it
5 of 19
disadvantage of inorganic growth
market share may fall
6 of 19
another disadvantage of inorganic growth
too slow for some owners
7 of 19
inorganic growth examples
merging or takeover
8 of 19
Backward vertical integration.
Occurs where a company merges with, or takes-over, another company which is closer to the source of the raw material (e.g. a car manufacturer taking-over a supplier of car components).
9 of 19
diversification
between steel company and food retailer
10 of 19
Horizontal intergration
his occurs when two firms in the same industry join together who produce the same product and are at the same stage of the production process (e.g. the Nestle takeover of Rowntree).
11 of 19
Forward vertical integration
Occurs where a company merges with, or takes-over, another company which is closer to the retail stage (i.e. nearer to the consumer). An example of this would be a car manufacturer taking-over a range of car showrooms.
12 of 19
Market share
The proportion of total market share sold by one business
13 of 19
Reason for expanding a business
Increases market share if sales of business grow faster than total sales than market share will incfrease
14 of 19
Reason for expanding a business
To increase sales- this should lead to any increase in profit
15 of 19
Reasons for not expanding
to keep controll
16 of 19
Reasons for not expanding
to offer personal service for customers
17 of 19
Reasons for not expanding
to avoid too much risk
18 of 19
Reasons for not expanding
Avoid workload
19 of 19

Other cards in this set

Card 2

Front

expanding business through the internet

Back

Another type of organic growth

Card 3

Front

opening a branch,office or factory in another location

Back

Preview of the back of card 3

Card 4

Front

Less risky than merging or taking over a business

Back

Preview of the back of card 4

Card 5

Front

do not need to borrow loans or sell shares to pay for it

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all business organistaions resources »