Growing the business (Edexcel GCSE Business): Flashcards
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Business growth definition
Business growth definition
Increasing sales output over time
3 reasons businesses pursue growth
3 reasons businesses pursue growth
Larger market share, lower costs, higher profits
Internal (organic) growth meaning
Internal (organic) growth meaning
Expansion from within using own resources
3 methods of internal growth
3 methods of internal growth
New markets, new products, new technology
Internal growth characteristic
Internal growth characteristic
Takes longer but maintains full control
External (inorganic) growth meaning
External (inorganic) growth meaning
Quicker expansion by combining with other businesses
Merger definition
Merger definition
Two+ companies voluntarily combine operations
Takeover definition
Takeover definition
One company purchases another company
Key difference: merger vs takeover
Key difference: merger vs takeover
Mergers voluntary; takeovers can be hostile
Backward vertical integration
Backward vertical integration
Joining business at earlier stage in production
Forward vertical integration
Forward vertical integration
Joining business at later stage in production
Horizontal integration
Horizontal integration
Companies at same production stage combine
Conglomerate merger
Conglomerate merger
Businesses with no common interests join
Purpose of horizontal integration
Purpose of horizontal integration
Reduce competition & increase market share