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Business Behaviour & Labour Market
Types of Business Growth
Organic Growth
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meezee
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What is
organic growth
?
Growth a company achieves from its exsiting businesses rather than newly acquired ones.
What are the three
elements
to
organic growth
?
Investing in existing high-growth activities by reallocating
fundos
from a variety of sources.
Creating new
products
, services or
business models
.
Performing better by constantly optimising their core
commercial capabilities
, such as sales, pricing and advertising.
What are the pros of
organic growth
?
Allows business owners to maintain control of their company, whereas a
merger
or
acquisition
would dilute or strip away their control.
What are the
cons
of
organic growth
?
Organic growth takes longer, as it is a slower process to aquire new customers and expand business within existing customers.