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Know that businesses may choose to grow in a number of different ways. Internally, businesses may
use their own resources to grow, whereas externally they may combine with other businesses or
individuals to achieve growth success. Be able to break concepts down into individual characteristics
and see the broader picture how they relate. E.g. Internal growth offers the advantage of a lower cost
approach and generally maintaining a greater level of control, however it is likely to take far longer for
full growth and success to be realized. This is different to external growth which is more rapid, but
requires greater financial investment and is more likely to reduce the level of control by the original
business management team.
Know the external growth options and the benefits and weaknesses of each. Be able to combine and
synthesize these ideas into a new idea and make a judgment based on the weight of evidence.. E.g. If
two businesses are considering a joint venture or a strategic alliance, understand the benefits of each
as well as the nature of the proposed new business, its time length and it likelihood of success (or
risk). If the new business can be separated from the original businesses and represents a risky
proposition, then a joint venture will allow the two main businesses to reduce the risk if the business