| What's Business Growth? | The process of a Frim getting Bigger |
| Name ways of Growth | Internal:
-Gaining new Customers
-Making new Products
-Opening new Stores
-Increasing existing Products [Output]
-Increase Market Share
External:
-Merger
-Takeover/Acquisition |
| How is Organic Growth [Internal] achieved? Detail two Organic Growth ways | The Business sells more of its Products.
-Opening new Stores allows +Market Share, Sales and awareness
-Introducing New Products allows New Customers, More sales and more Awarenesss |
| How is External Growth [Integration] achieved? Detail two External Growth ways | Joining with another Business
-Merger is when two+ firms join, to create a New Business. Some benefits are Reduced Costs, and Increased Revenues
-Takeover is when 1 business buys another business. This gives new access to Markets, Suppliers and Technology |
| What are the Types of Integration? | -Horizontal; Business joins with another Business, at the same stage of the Production process [a bakery buys another bakery]
-Backwards Vertical is when a Business joins its Supplier
-Forwards Vertical is when a Business joins its Distributors
-Diversification is when a Business joins another Business in a separate Market [bakery buys a games shop] |
| What are the Factors that affect Growth? | -Size of the Business
-The Product itself
-Position in Market
-Financial position of the Business
-Regulation |
| What are the Advantages of Growth? | -More range of Retailers/Outlets
-More awareness
-Less likely to Takeover
-More rewards for Staff
-Diversify/spread the Risk |
| What are the Disadvantages of Growth? | -Slower Decisions
-Communication breaks down
-Employees may feel de-motivated
-Co-ordination can be more harder
-More Costs |
