How do the merits of an internal growth strategy compare with a merger/acquisition strategy to grow a company's revenue and income?© BrainMass Inc. brainmass.com June 3, 2020, 10:24 pm ad1c9bdddf
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 ...
The solution discusses how the merits of an internal growth strategy compares with a merger acquisition strategy to grow revenue and income. References included.