opening more branches, recruiting more employees and improving product range are examples of
frequent discount offers, cash flow problems, closing some branches and staff redundancies are examples of
Benefits of growth
increased profit, increased publcity and economies of scale are examples of
Negatives of growth
lack of motivation due to new management and poor communication as the busines is too large are
Economies of scale
This is gained when an increase in production causes a decrease in prodction costs.
This amy also be known as organic growth.
The purpose of internal growth
To become better and stronger than other firms in the same type of business.
Types of external growth
amalgamations, mergers, integrations, takeovers or franchising
Llodys and TSB merging togthe ris an example of
Kraft buying a controlling amount of shares is an example of a
A type of merger which brings together firms with totally dissimilar and unrelated products.
If a chocolate factory were to merge with an ice-cream factory this would be an example of
Factors which may limit the growth of firms
lack of finance, competition, consumer taste and lack of entrepreneurial skills are some
This was set up to investigate merges and monopolies.