20 Analyse reason why a business might choose internal growth over external growth.

[Sir Afzal Shad]

20 Analyse reason why a business might choose internal growth over external growth. [3]
Hint: Avoids culture clash > Merging with another company can lead to disagreements > Internal growth allows the business to maintain its existing company culture.

[Abdullah Baig]

Kn
A business might choose internal growth over external growth to avoid clashes that can occur during mergers or takeovers
App
For example, when two companies merge, their employees may have different management styles or working habits which can lead to disagreements and lower motivation making it harder for the merged business to operate smoothly whereas growing internally lets the business expand while keeping its familiar systems
An
Therefore, internal growth helps maintain stability, teamwork, and reducing the risk of internal conflict

[Aarib Saad]

(KN)Can avoid any decision making clashes that would happen when collaborating with another business.
(APP)For instance, if a Chinese and an Italian Restaurant create a merger, it will be difficult for the business to decide which o the two food groups to focus on.
(AN)This in turn will lead to slower decision making, so competitors can be given the opportunity to launch new dishes before the business, so they will now have consumer retention, decreasing market share.

[Naveen fatima]

[KN] A business might choose to grow internally than externally to avoid cultural clashes that can occur while merging or taking over other businesses.
[APP] For example, A local cafe might choose to open more branches instead of merging with another cafe chain as it can create disagreements later on.
[AN] Internal growth is less risky and doesn’t require giving up control to another company. It lets the firm expand while keeping its culture and way of working unchanged and the business can grow from its own profit, avoiding debts.

[Abdullah Mohsin]

[KN] External growth might lead to cultural clashes
[APP] For example, a business which keeps good customer relations merges with a business that aims for maximum profit. This will lead to disagreements, worstening the relationship of management, making it difficult for the businesses to work together.
[AN] This may lead to poor product quality as the management would be more busy in fighting over business culture, worstening the business brand image and making it less competitive.

[shamaim shakeel]

KN] Internal growth happens when a business expands by increasing its own sales, opening new branches, or launching new products, instead of joining or buying another company.
[APP] For example, a business like Kraft Heinz Coffee can grow internally by opening new stores or adding new drink options instead of merging with another brand.
[AN] A business might choose internal growth because it is less risky and easier to control. It allows managers to maintain company culture, grow at a steady pace, and avoid conflicts or high costs that often come with external growth such as mergers or takeovers.

[EmmanWaseem]

There will be no culture clash
As the employees or workers in the business who know the culture of it and don't need to merge otherwise it can cause disagreements
Business can run smoothly with that culture and there are no disruptions in the operations

[Arham Qadri]

[KN] To avoid cultural clashes.
[APP] For example if a coffee and a cake business merge it will creates problems and the relations will be destroyed.
[AN] This will result in poor quality product, decrease in competition which will shatter the brands image

[Fatima ibtehaj]

[KN]Internal growth allows the business to expand at its own pace without having to integrate with another firm’s culture, systems, or staff.
[APP]For example, a local bakery opening a second branch keeps full control over operations instead of merging with another bakery that might have different standards.
[AN]This reduces the risk of conflicts or management problems which can make the communication process more smoother and hence lead towards a comfortable business environment which can give a sense of security to employees which can help boost their morale and effectiveness to work.

[Aayan Zaidi]

KN: Internal growth means expanding from within, like increasing sales, or opening new branches, instead of merging with another business.
APP: E.g a cafe might open a second shop instead of joining with another coffee chain.
AN: This way, the business keeps full control and grows at its own pace, with fewer risks or conflicts.

[abdurrehman waseem]

KN: Internal growth allows expansion by increasing sales or production rather than merging.
App: For example,A fast-food chain like Subway opening new outlets under its own control.
An: This approach avoids culture clashes, reduces financial risk, and allows management to maintain control — though growth is slower than external methods.

[Hajra]

K: A business might choose internal growth because it allows slower, more controlled expansion.
App: For example, a café may open a second branch using its own profits instead of merging with another business.
An: This helps the business keep full control, maintain its culture and quality, and avoid the risks or conflicts that can come with mergers or takeovers.

[Abdullah Altaf]

[KN] To avoid clashes that occur in external growth.
[APP] For instance, a tech firm known for its open approach merges with a company having a rigid, old-fashioned structure; this could spark disputes about how decisions are made and who does what.
[AN] Thus resulting in slow decision-making, which allows competitors to gain a market advantage by introducing new products or services before the merged company can adapt resulting in less sales.

[Abdur Rehman khan]

[KN] Internal growth happens when a business expands using its own resources/on it's own.
[APP] For example, a clothing retailer may open new branches under its own management instead of joining another brand.
[AN] This avoids clashes that often occur in mergers helps maintain consistent management style keeps employees motivated and working efficiently leading to smoother long-term expansion with fewer internal conflicts.

[Mamoona Hussain]

KN: Businesses may choose to expand internally so they can avoid the cultural clash by expanding externally.
APP: For instance, Factory A and Factory B both have their own ways of production. One may prefer to manufacture furniture though labour, the other may not.
AN: So if they merge, there may be conflicts among the managers of the two factories die to which the employees will not have a clear direction, causing communication issues, which will decrease efficiency of the business. This affects on the production will also dissatisfy the customers, and they may decide to stop buying from the factories,, hence they may also loose their customer base, leading to lesser sales, revenue and profits. Due to this, a business would want to expand internally instead of externally.