Organic and inorganic growth, economies and diseconomies of scale, multinationals and globalisation.
Most businesses aim to grow — but growth brings both benefits and risks.
Types of growth
- Organic (internal) growth: expanding output, new products or outlets — slower but lower-risk.
- Inorganic (external) growth: mergers (two firms join) and takeovers/acquisitions (one buys another) — fast but risky (culture clashes, high cost).
Integration can be horizontal (same stage of the same industry), vertical (a supplier or customer), or conglomerate (unrelated industries).
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