L9 : Business growth

1 ) What is business growth??.


2) Why companies want to grow?
- do they have a choice
- what are the benefits ?
- economy of scale, increase barrier to entry etc .

3) Type of growth - organic (using internal or own resources) and inorganic (tap resources outside the companies)

4) Inorganic growth : type of : mergers, acquisition, take over, joint ventures.


5) Ansoff growth strategies :

- current market, current product : market penetration .
- current market, new product : product development
- new market, current product : market development
- new market new product : diversification.

6) When is each strategy suitable for the companies ?
eg : market penetration : when the market is still not saturated.
how : varies the marketing mix, promotion.

7) Diversification : growing and also to spread risk, though high risk during initial stage.

8) Diversification : related (to current business) /unrelated (to current business, eg Virgin)

9) Merger : horizontal : usually with rival/competitors in same industries,
vertical : in the same industry/supplier chain eg : retailer takes over distributors, or distributors merge/buy into manufacturers.

10) FRANCHISING : an agreement between one party (with the business concepts/systems/products/service-franchisor) that allow the other party (to use/learn/run/own the system/business concepts/product/servce)

11) What are the factors that make a business franchisable?

12) What are the benefits/limitation of franchising?