Characteristics of businesses that grow successful
Distinctive brands and portfolios
Use market and product development
Resources to support expansion
Sustained investment in new products
Strong distribution channels
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Benefits of organic growth
Less risk than external growth (eg. takeovers)
Can be financed through internal funds (eg. retained profits)
Builds on a business' strengths (eg. brands, customers)
Allows the business to grow at a sensible rate
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Drawbacks of organic growth
Growth achieved may be dependent on the growth of the overall market.
Hard to build market share if business is already a leader.
Slow growth - shareholders may prefer more rapid growth.
Franchises (if used) can be hard to manage effectively.
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