Growth of Firms - External Expansion

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1) two main ways of external expansion are: ......... and .......
takeovers ... mergers (M+T)
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2) Takeover is when an existing firm ....... by buying another ....
expands ... firm
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3) Supplier - allows the firm to control the supply, ..... and ....... of its ... materials
cost ... quality ... raw
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4) Competitor - more ......... of scale and a bigger ...... .....
economies ... market share
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5) Customer - greater access to customers. Easier to .... its products.
sell
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6) Unrelated Firm - ......... into a new market. This ....... the risk of relying on just a few products.
diversify ... reduces
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7) Less than .... of M+T are .......... Management styles differ.
half ... successful
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8) Sometimes a takeover bid is ....... and .........
hostile ... unpopular
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9) M + T often lead to ....-....... and ..........
cost-cutting ... redundancy
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10) This can lead to ....... and ........... among workers
tension ... uncertainty
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11) Franchising ....... increases brand ......... and market share
rapidly ... awareness
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12) It doesn't have the usual ..... and .... of opening a business
costs ... risk
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13) By franchising, a firm can achieve greater ......... of .....
economies ... scale
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14) benefit - Increased .....
sales
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15) benefit - franchisor saves ..... on ..... and other costs because the .......... are run as separate businesses.
money ... wages ... franchises
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Other cards in this set

Card 2

Front

2) Takeover is when an existing firm ....... by buying another ....

Back

expands ... firm

Card 3

Front

3) Supplier - allows the firm to control the supply, ..... and ....... of its ... materials

Back

Preview of the front of card 3

Card 4

Front

4) Competitor - more ......... of scale and a bigger ...... .....

Back

Preview of the front of card 4

Card 5

Front

5) Customer - greater access to customers. Easier to .... its products.

Back

Preview of the front of card 5
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