3.1.7 - Expanding a business GapFill

After a business has been trading for a while, it may consider to start a growth strategy to fulfil its   motives captives olives objectives , and it can do this in a number of ways.

Firstly, there is external or   inorganic organic internal fabric growth, which is the process of becoming larger by buying another business and merging the two together to form a new company.  For example, Currys PC World is a merger of two businesses which were trading in similar markets.  A merger will help the business to gain   growth priceeconomies external of scale, but it runs the risk of   zero internalculture price clashes, meaning that the merger fails.

Secondly, there is the internal or  organic zero inorganic maximum growth, which means that the business grows without the need to merge or take over another company.  Organic growth means the business could be looking to develop   active innovative captive  festive new products which meet the changing needs of its customers in dynamic markets.  The business could also grow by trading in new markets, which could be in   final budding early emerging markets such as India and China.  It could also reach out to new markets by changing its marketing mix and perhaps selling its products in new   oranges sections segments areas .  For example, North Face jackets are now worn by fashion-conscious teens, but the brand was previously worn just by hikers in the 25+ age group.

If a business is considering a growth strategy, it will need to raise finances.  It can use internal sources of finance such as  retained maximum gained zero  profits or sale of an asset such as a machine or van in order to fund the growth.  If a private limited company (Ltd) wants to grow, it may consider a stock market   rotation motivation flotation introduction , which means that it will be able to sell shares to the general public.  If it becomes a   ltd ptc p&o plc , it will be able to attract increased investment, from a share issue, to help it grow and expand.