3.2.3 Organic Growth

• Organic Growth: involves expansion from within the business

  Methods:

  • expanding product range
  • increasing number of stores/business units
  • opening in a new location
• Organic Growth Advantages:

  • able to maintain current management style, culture & ethics
  • less risk than external growth
  • can be financed through internal funds
  • builds on business's strengths & distinctive capabilities(USP)
  • allows the business to grow at a sensible rate - planning & control
• Organic Growth Disadvantages:

  • may take a long time to grow & adapt to big changes
  • growth dependant on overall market - missed opportunities
  • harder to build market share if already market leader
  • slow - shareholders may prefer more rapid growth
  • may be difficult if the business has limited finance available