3.1.2 Business growth

• Business growth refers to an increase in the size, operations, and revenue
• Organic growth involves expansion through external means such as mergers and acquisitions.

  False
• Inorganic growth occurs through external means such as mergers and acquisitions
• Match the type of business growth with its key characteristic:

  Organic Growth ↔️ Controlled and sustainable growth

  Inorganic Growth ↔️ Faster market entry
• A disadvantage of inorganic growth is the potential for culture clashes
• High implementation costs are a disadvantage of inorganic growth
• Why is business growth essential for economic growth?

  Increases job opportunities
• Growth always leads to increased profitability.
• Achieving economies of scale reduces costs per unit
• What is the primary benefit of improved market position for a growing business?

  Increased market share
• Strong business growth attracts investors
• What are the two primary strategies for achieving business growth?

  Organic and inorganic
• Organic growth allows for faster market entry compared to inorganic growth.

  False
• An example of organic growth is a bakery expanding its menu with vegan options
• What is an example of inorganic growth?

  Acquiring a smaller competitor
• Match the type of business growth with its key description:

  Organic Growth ↔️ Internal expansion through increased sales

  Inorganic Growth ↔️ External expansion via mergers
• A coffee shop adding vegan options to its menu is an example of organic growth
• What is an example of inorganic growth in the software industry?

  Acquiring a competitor
• Market demand is a key factor influencing business growth
• Advances in technology can create new markets and reduce costs, fostering business growth.
• What is a key characteristic of organic growth?

  Sustainability
• Intense competition always hinders business growth.

  False
• Access to sufficient financial, human, and physical resources is crucial for expansion efforts.
• How does the global economy influence business growth?

  Market stability
• Competition can stimulate innovation and differentiation.
• Advances in technology can improve productivity and create new markets.
• What are the two main categories of business growth strategies?

  Organic and inorganic
• Match the growth strategy with its description:

  Organic Growth ↔️ Expansion through internal means

  Inorganic Growth ↔️ Expansion through mergers and acquisitions

  Market Penetration ↔️ Increasing market share in existing markets
• Inorganic growth can lead to cultural clashes within the organization.
• Product development aims to capture new customer segments.
• What does business growth primarily involve?

  Increased operations and revenue
• Match the growth strategy with its advantage:

  Organic Growth ↔️ Sustainable and controlled expansion

  Inorganic Growth ↔️ Faster market entry and diversification
• Growing businesses create jobs and stimulate economic activity.
• Economies of scale reduce costs per unit through bulk purchasing.
• Arrange the following steps in the process of business growth:

  1️⃣ Increase sales and revenue

  2️⃣ Develop new products

  3️⃣ Penetrate new markets
• What are the two primary strategies for business growth?

  Organic and Inorganic
• Organic growth involves expanding from within by increasing sales, developing new products, and penetrating new markets
• What is an example of inorganic growth?

  Software company buying a competitor
• Organic growth is faster than inorganic growth.

  False
• Inorganic growth may lead to potential culture clashes