Growth

6. A pub chain taking over a brewer would be an example of this.
10. A brewer taking over a pub chain would be an example of this.
12. When two businesses agree to join together and operate as one.
14. A market with a small number of large competitors.
17. A reduction in average cost as output increases.
18. Where bigger companies can use more efficient machinery.
19. Selling an existing product in a new market.
21. A market with a large number of very similar competitors.
24. Selling a new product in a new market.
25. Porter’s strategies were called this as they were appropriate to any business or industry.
26. Benefits of growth that arise from within the firm.
28. Expansion from outside the business, e.g. mergers or takeovers.

1. Average cost increase as a consequence of growth.
2. An increase in this is likely from horizontal integration.
3. Where bigger companies have access to cheaper source of finance.
4. Clashes in this can make integration difficult to manage successfully.
5. The joining of companies by merger or takeover.
7. Expansion from within a business, e.g. expanding the number of locations or franchising.
8. Ansoff’s strategy of increasing sales of existing products in existing markets.
9. When one business purchases a controlling interest in another.
11. Porter’s model for assessing the attractiveness and profitability of an industry.
13. The joining of businesses in the same industry and at the same stage of production.
15. the acronym used to identify factors in the external environment.
16. A reduction in this is likely from horizontal integration.
20. When businesses in the same industry but at different stages of production integrate.
22. Where a bigger company allows smaller companies to use its name and sell its products.
23. When a business expands quickly without having the financial resources to support such a quick expansion.
27. Integration with a business in a different industry.