Inorganic (external) growth

• strategic alliance/joint venture - arises when tow or more businesses agree to work together on a common project that benefits both firms - the businesses agree to co-operate and share resources for their mutual benefit
• merger - occurs when two or more businesses join together for their mutual benefit
• takeover/accquisition - one business purchases at least 51% of another business in either a hostile or friendly manner - the business may take over a firm in the same or, in some cases, a different industry