1.7 Expanding a business

    Cards (61)

    • There are two main methods of business expansion: organic and inorganic
    • How does organic growth expand a business?
      Using its own resources
    • What is a key limitation of organic growth?
      Limited growth potential
    • What is a key characteristic of inorganic growth?
      Faster, but more complex
    • Primary research involves analyzing existing data from industry reports.
      False
    • What is the primary characteristic of organic growth as a business expansion strategy?
      Gradual, less risky
    • There are two main types of market research: primary and secondary
    • An expansion plan is a strategic document outlining how a business intends to grow
    • What is the purpose of preparing financial projections in an expansion plan?
      Assess the return on investment
    • What are the two main methods of business expansion?
      Organic and inorganic growth
    • What are some examples of organic growth strategies?
      Increasing production capacity
    • Primary research is more time-consuming and expensive than secondary research.

      True
    • Steps in developing an effective expansion plan:
      1️⃣ Define Objectives
      2️⃣ Assess Market Conditions
      3️⃣ Choose Expansion Strategy
      4️⃣ Develop Operational Plans
      5️⃣ Prepare Financial Projections
      6️⃣ Risk Management
    • Financial projections are essential for assessing the potential return on investment (ROI) of expansion.

      True
    • Increasing production capacity involves investing in new equipment
    • What is one way to increase production capacity during business expansion?
      Investing in new equipment
    • What is crucial during business expansion in terms of resource planning?
      Careful resource management
    • Match the funding source with its primary consideration:
      Internal Funds ↔️ Availability of funds
      Bank Loans ↔️ Repayment terms
      Equity Financing ↔️ Ownership dilution
      Grants/Subsidies ↔️ Eligibility criteria
    • What are two categories of marketing channels to consider during expansion?
      Traditional and digital
    • Combining traditional and digital marketing approaches can enhance campaign success.

      True
    • Match the metric with its description:
      Revenue Growth ↔️ Increase in total sales
      Market Share ↔️ Percentage of total market
      Customer Satisfaction ↔️ Feedback on customer experience
      Profitability ↔️ Increase in net profit
    • Market research is optional for businesses looking to expand.
      False
    • Organic growth involves reinvesting profits or opening new locations
    • Examples of inorganic growth include mergers, acquisitions, or joint ventures
    • Why is market research crucial for business expansion?
      Understanding demand, competition, opportunities
    • What can businesses achieve by conducting both primary and secondary market research?
      Informed expansion decisions
    • Inorganic growth is more controlled and less risky than organic growth.
      False
    • Primary research involves analyzing existing data from various sources.
      False
    • Steps in developing an expansion plan
      1️⃣ Define Objectives
      2️⃣ Assess Market Conditions
      3️⃣ Choose Expansion Strategy
      4️⃣ Develop Operational Plans
      5️⃣ Financial Projections
      6️⃣ Risk Management
    • Risk management in an expansion plan involves identifying potential risks and developing mitigation strategies
    • Organic growth involves expanding the business using its own resources
    • Primary research involves collecting new data directly from the target market
    • Conducting both primary and secondary research helps businesses make informed decisions about their expansion strategies
    • Organic growth involves using the business's own resources
    • Identifying potential risks and developing mitigation strategies is part of risk management.
    • Optimizing supply chain and logistics is necessary for efficient expansion.

      True
    • Optimizing supply chain and logistics is essential for serving a larger customer base during expansion.

      True
    • Accurately forecasting resource needs is a key aspect of resource planning during expansion.

      True
    • What is the purpose of proactively planning and managing operational changes during expansion?
      Ensuring a smoother process
    • What does consistent brand messaging reinforce during marketing efforts?
      Brand values