4122 p.m.

Apuntes

• Subtopic: Internal vs External Growth Internal (organic) growth is financed by retained profit, new products, and new markets. It is slow but steady and less risky. External growth involves mergers, acquisitions, alliances, joint ventures, and franchising, leading to faster expansion but with higher risk. [Remember!] Internal growth is controlled and sustainable, while external growth is fast but complex. • Subtopic: Reasons to Grow Economies of scale lead to lower average costs and higher efficiency. Market power results in greater market share and higher pricing power. Growth is essential for survival to defend against competition and avoid takeovers. Synergies allow sharing of resources, knowledge, or technology. Managerial motives include prestige, higher pay, and influence. • Subtopic: Reasons to Stay Small Niche markets focus on specialized products and close customer relationships. Flexibility allows for faster decisions and quick adaptation to change. Lower costs result from less bureaucracy and lower overheads. Owner control provides independence, with personal goals prioritized over profit. Customer loyalty is strengthened through trust and a “personal touch.” [N...