Methods of Business Expansion and Growth Strategies
Explore the methods of business expansion including organic and inorganic growth. Learn about organic growth through opening new branches, offering franchises, and expanding online. Discover the benefits and disadvantages of each approach to guide your business strategy effectively.
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Presentation Transcript
METHODS OF EXPANSION
ORGANIC AND INORGANIC GROWTH ALL Define the two methods of growth Most Analyse organic growth Some
METHODS There are two methods of growth 1. Organic or internal growth 2. Inorganic or external growth
ORGANIC GROWTH Organic growth is internal expansion and tends to be slow and steady It can be achieved in a number of ways: Opening another branch, office or factory Offering franchises Expanding through the internet
OPENING NEW BRANCHES Benefits Less risky Better than borrowing or shares Easier to manage and control Disadvantages Can be slow Competition may follow (market share down) May not have experience
FRANCHISES Benefits Growth paid for by the franchisee Franchisees want to expand quickly Do not need supervision Disadvantages May not keep to their legal agreement Brand image can be damaged Most profits are kept by the franchisee
INTERNET Advantages Reaches a higher number of customers Costs are lowered Can reach other markets Disadvantages Not everyone has access Systems crashes and viruses can affect No customer contact face to face
QUICK QUIZ Name two types of growth Give a definition of organic growth Give an advantage of opening new branches Give a disadvantage of selling a franchise Give an example of a franchise Give one advantage and one disadvantage of internet selling
