ALL Define the two methods of growth Most Analyse organic growth Some

There are two methods of growth 1. Organic or internal growth 2. Inorganic or external growth

Organic growth is internal expansion and tends to be slow and steady It can be achieved in a number of ways:  Opening another branch, office or factory  Offering franchises  Expanding through the internet

Benefits Less risky Better than borrowing or shares Easier to manage and control Disadvantages Can be slow Competition may follow (market share down) May not have experience

Benefits  Growth paid for by the franchisee  Franchisees want to expand quickly  Do not need supervision Disadvantages  May not keep to their legal agreement  Brand image can be damaged  Most profits are kept by the franchisee

Advantages  Reaches a higher number of customers  Costs are lowered  Can reach other markets Disadvantages  Not everyone has access  Systems crashes and viruses can affect  No customer contact face to face

 Name two types of growth  Give a definition of organic growth  Give an advantage of opening new branches  Give a disadvantage of selling a franchise  Give an example of a franchise  Give one advantage and one disadvantage of internet selling