Save
GCSE Business Studies
1. Business in the real world
1.7 Expanding a business
Save
Share
Learn
Content
Leaderboard
Share
Learn
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
See all 61 cards