• Internal (Organic) Growth - Like a plant, slow and steady!
  • Grows from the business's current operations.
  • Expansion via more sales or new products.
  • Mostly financed using profits saved (retained profits).
  • Sometimes borrows for big spends (e.g., new machinery).
• External (Fast-Track) Growth - Need for speed! 🏎️
  • Partnerships or deals with other businesses.
  • Quicker but riskier! ⚠️
  • Ways to go external: M&A, takeovers, joint ventures, strategic alliances, franchises.
  • Usually needs big money from outside.
  • Potential 🏆: Rapid market share increase, crush competition.

🍎 Real-world Example: Think of it like growing apples. You can either plant your own trees and wait (internal) or buy an existing apple farm (external).

• Mergers and Acquisitions (M&As) & Takeovers
  • M&A: Two companies combine into one biggie.
  • Takeover: One buys the other (sometimes forcefully – called hostile takeovers).
  • Result: One mega-business!

🍟 Real-world Example: McDonald's buying Burger King (hypothetically!). Either a merger or one taking over the other.

• Integration Types 🔄

  • Horizontal Integration - Same type of business.
    • 🚀 Power Move: Increased market share, economies of scale.
    • 🌍 Real-world Example: Vodafone + Idea Cellular = Biggest telecom in India!
  • Vertical Integration - Different stages of production.
    • Backwards: Going up the production chain.
      • Example: Apple buying Dialog Semiconductor, a chip supplier.
    • Forwards: Moving down the production chain.
      • Example: Farm opens a restaurant.
  • Conglomeration (Diversification) - Different types of business.
    • 🛡️ Reduces risks.
    • 🎭 Example: Tata Group: They've got hotels, steel, motors, and more!

• Franchising 🍔

  • Franchisee Perks: Known product, setup support, reduced costs, stock supply, expert help.
  • Franchisee Downsides: Unlimited liability, royalty payments, limited control.
  • Franchisor Perks: Access to markets, local insights, less risk, more money, global decisions.
  • Franchisor Downsides: Less daily control, image risk.

🍦 Real-world Example: You opening a Dairy Queen store. You get their branding and recipes (Franchisee perks) but have to follow their rules (Downsides).

Remember! Growth strategies can be a win or can cause issues. Like eating a big meal, feels great but can lead to a tummy ache if not done right! 🍕🤢 Always think and choose wisely! 🤓

Happy Studying! 🌟📚🎓