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

Ch 3 Size of business
M huzaifa jillani
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Re: 20 Analyse reason why a business might choose internal growth over external growth.

Post by M huzaifa jillani »

(KN)
Internal growth happens when a business expands by increasing its own sales while external growth involves merging with or taking over another business.
(APP)
For example a local restaurant might open another branch on its own instead of merging with another food company.
(AN)
This allows the business to keep full control over decisions and operations rather than sharing owner ship or management with another firm. As a result the business can grow at this own pace maintain its culture and quality standards and avoid problems like disagreement or integration issues that often occur after mergers.
hassanalizafar
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Re: 20 Analyse reason why a business might choose internal growth over external growth.

Post by hassanalizafar »

[KN] A business might choose internal growth to avoid the risks of merging with another company.
[APP] For example, a software company may prefer to expand by developing new products rather than merging with a competitor, avoiding clashes in company culture.
[AN] This allows the business to maintain its existing culture which keeps staff motivated leading to higher productivity which reduce conflicts and turnover hence improving operational efficiency by supporting controlled growth.
Shaliza khawaja
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Re: 20 Analyse reason why a business might choose internal growth over external growth.

Post by Shaliza khawaja »

business might erfer internal growth because allows expansion safely in a controllwed environment
For example, a bakery may decide to open another branch rather than merging with another business to avoid major changes or risks.
this helps them avoid conflicts, and grow slowing rather then having to take up sudden changes and cost, this steady pace helps ensure quality and loyal customer base
sarah_naeem
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Re: 20 Analyse reason why a business might choose internal growth over external growth.

Post by sarah_naeem »

[KN]: A business might choose internal growth over external growth to avoid cultural clash that occurs while merging with another company.
[APP]: For example, a coffee shop might choose to open more branches of its shop rather than merging with another coffee shop that could create disagreements, misunderstandings etc later on.
[AN]: Thus, internal growth is far more better as it's less risky and leading the business to keep all profit to themselves rather than sharing an agreed amount which also avoids debts which lead to better brand image too.
Areeba Arshad
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Re: 20 Analyse reason why a business might choose internal growth over external growth.

Post by Areeba Arshad »

[KN] Internal growth is when a business expands by increasing its own output, sales, or product range rather than merging with or acquiring another firm.
[APP] For example, a restaurant chain might open new branches instead of merging with another food company.
[AN] This helps avoid culture clashes that often occur in mergers, allows the business to keep its existing management style and values and ensures smoother, more controlled long-term growth.
Tuqwa
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Re: 20 Analyse reason why a business might choose internal growth over external growth.

Post by Tuqwa »

kn:a business might choose internal growth because it avoids cultural clashes that often occur in mergers or takeovers.
app:forexample when two businesses combine their employees may have different working styles or values which can lead to conflict and inefficiency.
an:by growing internally the business can expand at its own pace and maintain a stable familiar company culture without disruption.
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