Company Growth
When a company grows, the growth may be either organic or inorganic.
1.Organic growth (known as internal growth) means that the company itself has grown from its own business activity.
2. Inorganic growth (known as external growth) means that the company has grown by merger or take-over.
Companies may want to grow for various reasons:
- To gain economies of scale
- To spread risk - diversification can often help spread risk
- To gain market share
- To increase profits and therefore returns for shareholders
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