Purchase Solution

Internal Growth and Merger Acquisition

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

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.

Solution Preview

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 ...

Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Introduction to Finance

This quiz test introductory finance topics.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Motivation

This tests some key elements of major motivation theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.