Recap 1.10 Growth, 2.1 Technology

what is Internal Growth?

• Growth through selling more products
• Growth through joining another business
• Growth through buying a supplier
• Growth through diversification

Identify the method used for internal growth

• Purchasing new machinery to manufacture more products
• selling more products in existing markets
• selling existing products in new markets.
• All of the above

Identify the benefits of internal growth

• Higher economies of scale 
• employees are hard to manage
• Businesses must borrow finances
• Supplier cannot cope with demand

Disadvantages of internal growth

• Employees become hard to manage
• Businesses will take out loans to cover costs
• Supplier may not be able to keep up with demand
• All of the above

what is external growth

• where a busines grows by making more products
• where  a business grows by joining with another business

Define Merger

• Two or more businesses coming together to make a new business
• when one business takes over another

Define Takeover

• when 2 or more businesses join together to make a new business
• one business gains control of another

Which of the following businesses merged together to create a new business?

• VW and Porsche 
• TMobile and EE
• Lovefilm and Amazon
• Costa Coffe and Starbucks 

Benefits of external growth

• Higher economies of scale
• Access to new markets
• company become bigger faster
• All of the above

Disadvantages of external growth

• Expensive to buy out sharholders
• Conflict can occur
• Diseconomies of scale problems with communication
• All of the above