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    Internal Growth and Merger Acquisition

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    How do the merits of an internal growth strategy compare with a merger/acquisition strategy to grow a company's revenue and income?

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    https://brainmass.com/business/mergers-and-acquisitions/internal-growth-and-merger-acquisition-229781

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    How do the merits of an internal growth strategy compare with a merger/acquisition strategy to grow a company's revenue and income?
    Internal growth is the planned and slow increase in the size and resource of the firm.

    Merits of internal growth strategy:
    ? It involves comparatively little change in the existing organization structure as the growth is systematic.
    ? It can be planned and managed easily as it is slow.
    ? The growing firm is in a better position to face competition in the market.
    ? Capital required for expansion can be taken from the firm's own funds.
    ? Better use of resources by effectively utilizing its own personnel and facilities.
    ? Using the diversification method of internal growth strategy, the firm becomes more competitive than a single product firm and it minimizes risk, e.g., recession in one line of business can give way to grow another line of business.
    ? It ...

    Solution Summary

    The solution discusses how the merits of an internal growth strategy compares with a merger acquisition strategy to grow revenue and income. References included.

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