Growth (AQA GCSE Business): Flashcards
📚Flashcards
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Practise the cards
15 cards from this deck
Organic growth definition
Organic growth definition
Expansion from within using own resources & capabilities
Alternative term for organic growth
Alternative term for organic growth
Internal growth
Measures of business expansion
Measures of business expansion
Sales revenue, profit, employees, outlets, or market share
What is market share?
What is market share?
% of total market the business controls
E-commerce as organic growth method
E-commerce as organic growth method
Reaching customers online without physical locations
Franchising in organic growth
Franchising in organic growth
Opening new locations using franchisee capital & operations
Key advantage of organic growth
Key advantage of organic growth
Lower risk than takeovers; uses internal funding
Key disadvantage of organic growth
Key disadvantage of organic growth
Slower pace; depends on overall market growth
Franchisor definition
Franchisor definition
Original business granting licence to franchisee
Franchisee definition
Franchisee definition
Business receiving licence to trade using franchisor's brand
UK franchise profitability rate
UK franchise profitability rate
97% of franchise units are profitable
Franchise benefit for franchisor
Franchise benefit for franchisor
Less finance needed; franchisees provide capital
Franchise risk for franchisor
Franchise risk for franchisor
Reputation depends on franchisee performance
Just Eat organic growth method
Just Eat organic growth method
E-commerce platform connecting customers & restaurants
Typical franchise start-up cost
Typical franchise start-up cost
Around £50,000 (can be as low as £10,000)