Business Growth & Evolution

• What is joint venture?


  • Two or more businesses agree to work together on a particular project
• What is a strategic alliance?


  • Two or more businesses agree to share resources to achieve the same objectives
• What is a Franchise?


  • A business which purchases a licence to use the name, logo and trading systems of another business
• Advantages of takeovers & mergers


  • Larger product portfolio
  • Increase in capital
  • Increase in FOP's
  • Higher market share
  • Less competition
• Disadvantages of takeovers & mergers


  • Takeovers will be expensive
  • May have to lay off employees
  • The CMA may not allow it
  • Conflict will arise
  • Decreases customer choice
• Advantages of a joint venture


  • Increase in FOP's
  • Less time spent on a project
  • Specialist with expertise
  • Short-term / Low risk commitment
• Disadvantages of a joint venture


  • Uneasy to organise
  • Lack of commitment
  • lots of delays
• Advantages of a Franchise


  • Doesn't have to establish a reputation
  • Buying into an advanced business
  • Low risk
  • Provide: support & training
• Disadvantages of a Franchise


  • Initial cost
  • Ongoing fees