Organic Growth

• Methods of Growth - Organic Growth (happens internally)

  This can be achieved by:

  • Open new branches (could become multinational)
  • Diversification - develop new products
  • Increase advertising to increase sales
  • Hire additional staff

  This is a slower method of Growth compared to growing by joining with another business and can be limited by the size of the existing market.
• Organic Growth - Benefits

  • No loss of control as the business is not integrating with another.
  • Can be less risky than taking over another business.
  • Can be financed through internal savings so not having to borrow from elsewhere.
  • Open new physical branches means that they can reach new markets.
  • Hire more staff will bring in new ideas to the business to develop new products/increase production.
  • Increase production capacity by investing in new capital and technology to make more products themselves.