1.6 Growth and evolution

Two or more firms agree to form as a new organization, losing original identities

• Merger
• Joint venture
• Acquisition
• Franchise

One company buys a controlling interest in another firm

• Horizontal integration
• Acquisition
• Merger
• Internal growth

Two or more businesses split costs, risks, control and rewards of a project

• Strategic alliance
• Franchise
• Joint venture
• Merger

A synonym for 'acquisition'

• Internal growth
• Vertical integration
• Merger
• Takeover

PepsiCo acquiring Quaker Oats Company represents which type of integration?

• Lateral
• Backward vertical
• Forward vertical
• Conglomeration

An organisation that operates in two or more countries, with head office in a home country

• Globalisation
• Multi National Company
• Strategic alliance
• Conglomerate

Refers to the combined effect being greater than the sum of the individuals

• First mover advantage
• Diversification
• Flexibility
• Synergy

To combine or unite to form one organization

• Redundancy
• Franchise
• Conglomerate
• Amalgamation

When a business buys up a firm operating in the same stage of production

• Horizontal integration
• Vertical integration
• Lateral integration
• Internal growth

Growth type when a business grows using its own resources to increase scale of its operations

• Vertical
• External
• Organic
• Lateral