Question
Distinguish between internal expansion and external expansion.

Answer

Internal expansion
External expansion
Internal growth (or organic growth) is when a business expands its own operations by relying on developing its own internal resources and capabilities.
External growth (or inorganic growth) strategies are about increasing output or business reach with the aid of resources and capabilities that are not internally developed by the company itself.
Organic growth can come about from:
  • Increasing existing production capacity through investment in new capital & technology.
  • Development & launch of new products.
Inorganic growth can come from:
  • Mergers and Acquisition and
  • Strategic alliances.

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