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.