2.1- Growing the Business

• Organic Growth

  The business has grown from within through developing new products , entering new markets and new technology
• Advantages- Organic

  • retains company culture
  • higher production means benefits from economies of scales and lower average costs
  • more influence = more market share
• Disadvantages of Inorganic

  • Very high risk strategy
  • long period between investment and return on investment
  • growth may be limited
  • dependent on the reliance on sales forecast
• Inorganic Growth

  expanding externally : merger ( 2 businesses become one ) and takeover ( business taking over another one )