Learning objective
Explain reasons why businesses grow or retrench and distinguish organic from external growth.
Read the explanation, check the common trap, then practise with flashcards and questions.
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Topic
Assessing a change in scale
Subtopic
Growth and retrenchment
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Quick explanation
Explain reasons why businesses grow or retrench and distinguish organic from external growth
- This point belongs to Assessing a change in scale, especially Growth and retrenchment.
- You need to be able to explain reasons why businesses grow or retrench and distinguish organic from external growth.
- The key ideas to know are growth.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Growth and retrenchment to exam-style questions, flashcards, and revision notes for Assessing a change in scale.
Quick student answer
What factors explain reasons why businesses grow or retrench and distinguish organic from external growth in Assessing a change in scale?
Direct answer
For Business, this page helps you revise reasons why businesses grow or retrench and distinguish organic from external growth in Assessing a change in scale. Focus on the key terms, the exam command, and a clear answer that matches the question. Key terms to check are change in scale and Growth and retrenchment.
Key terms
- change in scale: change in scale is a Business concept used to analyse Explain reasons why businesses grow or retrench and distinguish organic from external growth.. A strong answer defines it, applies it to a named business context and explains the commercial consequence.
- Growth and retrenchment: Growth and retrenchment should be judged by linking it to objectives such as profit, survival, growth, competitiveness, efficiency or customer satisfaction.
- growth: growth affects stakeholders differently, so analysis should consider owners, managers, employees, customers, suppliers or investors before reaching a judgement.
Common trap
Growth and retrenchment common mistake 1: Show the method first, then give the final answer in the required form. Apply this directly to Growth and retrenchment.
Related questions
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Revision notestopic notes
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Open revision notesRelated learning objectives
- Analyse economies of scale, economies of scope, diseconomies of scale, synergy and overtrading.
Growth and retrenchment
- Assess mergers, takeovers, ventures and franchising as methods of growth.
Growth methods and types
- Compare vertical, horizontal and conglomerate integration as types of external growth.
Growth methods and types
