Unit 7 - GROWTH

Firms have many reasons for growing including:

Some businesses remain small however because their owners lack the capital to expand, they may not have the market and may wish to keep control.

Firms grow internally through additional partners and selling shares to family and friends. They grow externally through selling shares on the stock market and through mergers – joining with other businesses – and takeovers – taking over other businesses.

HORIZONTAL INTEGRATION – joining with another firm at the same stage of production eg. Two furniture makers

VERTICAL INTEGRATION – joining with another firm at a different stage of production eg. A forestry business and a furniture maker.


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