Achieving growth
There are many ways a business can achieve growth:
Merger
A merger is when two companies decide to join together, like when Halifax and Bank of Scotland combined to form HBOS.
Takeover
A takeover is more hostile than a When two companies decide to join together.. This is when a company (usually a larger one) buys out a rival. Kraft Foods bought out Cadbury in early 2010 for £12 billion.
Acquisition
An acquisition is when one company buys the Something a business owns that has monetary value such as a delivery van or money in the bank. or operations of another company.
Franchising
Franchising is where a business leases its idea to franchisees. This allows new branches to open across the country and internationally. Many well-known high street opticians and burger bars are franchises. A franchise is a joint venture between:
- a franchisee, who buys the right from a franchisor to copy a business format
- a franchisor, who sells the right to use a business idea in a particular location
Becoming a multinational
By becoming a multinational a business will expand its operations to operate in more than one country. This will allow the company to access new A word used to describe trade or the buying and selling of products. which can lead to an increase in sales and A company’s proportion of sales within a specific market..
Product development
Developing new products allows a company to target new A word used to describe trade or the buying and selling of products. and expand their product range.
Advertising
Advertising can be used to increase awareness of a company’s products allowing them to grow organically or can be used to inform customers of new products.
Increasing staff
By increasing staff numbers, the productivity of a business will grow and there may be increased levels of customer satisfaction.