Types of Growth: Organic and External

Types of Growth: Organic and External

Assessment

Interactive Video

Business

University

Hard

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The video tutorial discusses two main types of business growth: organic and external. Organic growth involves expanding from within, using methods like increasing production or reinvesting profits. Examples include Lidl and McDonald's. External growth involves mergers and takeovers, allowing rapid expansion and cost synergies. The video also covers financing methods for organic growth, challenges like slow expansion, and integration types in external growth.

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4 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the potential downsides of organic growth as mentioned in the text.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the two main forms of external growth?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

Explain the concept of horizontal integration in the context of external growth.

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What challenges might arise during the integration of two firms after a merger or takeover?

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