Enterprise · Both
Business Growth Strategies
Growth can increase market share and economies of scale, but it also brings risk and control challenges.
Organic vs external
Organic: expand using own resources (new products, more outlets).
External: merger or takeover – faster but integration risk.
Franchising as growth
Franchisor grows brand with franchisee capital and local knowledge.
Franchisee gets a proven model but pays fees and follows rules.
Worked example
One risk of a takeover?
Solution: Culture clash, overpaying, debt, loss of focus on core business.
Practice questions
1. Organic growth means?
2. One benefit of franchising for the franchisor?