1.6 Business Growth

• Organic growth


  Internal growth using own resources:

  • Increasing output
  • Gaining new customers
  • Developing new products
  • Increasing market share
• External growth


  • Merger - Two or more businesses agreeing to join together
  • Takeover - One business takes control of another
  • Horizontal - Two businesses in the same industry and stage of production sector
  • Forward Vertical - A business takes over/merges with another business in the next stage of production
  • Backward Vertical - A business takes over/merges with another business in the previous stage of production
  • Diversification - Two businesses with no connection coming together