2.external Influences

Question 1

Organic growth

Answer 1

• opening new stores
• launching new products
• employing more workers
• launching existing products into new markets
• investments in technology

Question 2

External growth

Answer 2

• merger or acquisition

- joint venture overseas

Question 3

External growth cons

Answer 3

• could result in redundancies
• could result in higher prices
• extra debt took on
• dominant business
• may suffer from diseconomies of scale

Question 4

Organic growth pros

Answer 4

• less risky than external
• could be financed by retained profits
• is a sensible/ steady way of growing

Question 5

Organic growth cons:

Answer 5

• growth rate could be slow to satisfy shareholders
• will be difficult to achieve if the market is not growing or shrinking
• hard to achieve market share if the business is a current leader

Question 6

Physical market

Answer 6

Face to face. Customer walks into shop, employees are encouraged to provide a great customer service.