Organic Growth

• What does organic growth involve in a business?

  Expansion from within the business
• How does organic growth build on a business's capabilities?

  It utilizes the business's own resources
• What is one method of organic growth?

  Developing new product ranges
• What is a strategy for organic growth related to international markets?

  Launching existing products in new markets
• What is another method of organic growth?

  Opening new business locations
• What does investing in additional production capacity allow a business to do?

  Increase output and sales volumes
• What are the benefits of organic growth?

  • Less risk than external growth
  • Can be financed through internal funds
  • Builds on business strengths
  • Allows sensible growth rate
• What are the drawbacks of organic growth?

  • Dependent on overall market growth
  • Hard to build market share as a leader
  • Slow growth may not satisfy shareholders
  • Franchises can be hard to manage