Organic and External Business Growth

Internal growth is also known as

• Merger

• Sales maximisation

• Organic growth

• Inorganic growth

External growth is also known as

• Organic growth

• Inorganic growth

• Merger

• Sales maximisation

An example of Organic growth is

• Merger

• Launching new products

• Acquisition

• Takeover

The possible benefits of growing the business are

• Keeping control over decision making

• Larger potential profits

• Benefit from bulk buying discounts

• Security for the future of the business

The disadvantages of Organic growth are

• There is little or no risk in growing slowly

• This is a very high risk strategy, opening lots of stores or taking on new staff is very risky

• Long period between investment and return on investment

• Growth may be limited and is dependent on reliability of sales forecasts

Which best describes growth by expanding overseas? When a business:

• Finds new customers to buy its products in its domestic market

• Purchases another business in its home country

• Finds a new market in another country

• Invests heavily in research and development

Which two are examples of organic growth?

• When two businesses agree to join together

• When a business expands overseas

• When a business acquires a controlling interest in another business

• When one business buys another business

• When a business launches a new product