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GROWTH - Coggle Diagram

- - - - Limited potential for economies of scale.
- - - - Mergers, acquisitions and takeovers
        
        MERGERS
        
        A merger is a form of external growth that usually results in two firms combining to form a third entity. This new company then replaces the two that existed before the merger.
        
        acquisitions
        
        An acquisition is a form of external growth.The term acquisition implies that one firm purchases another firm.
        
        takeovers
        
        Takeover is a term often used to describe the process that results in either a merger or an acquisition. A takeover involves one firm offering to buy the shares from the shareholders of another firm, usually at a price that exceeds their value in the stock market.
      - Joint ventures
        
        Joint ventures, also called JVs, involve the creation of a new company by two or more 'parent' companies. The joint venture is formed in order to carry out an aim or objective that might be difficult for each of the parent co mpanies to achieve on its own.
      - Strategic alliances
        
        Strategic alliances involve two or sometimes more organisations working together to realise a set of common objectives. The relationship between the companies may be spelled out in a contractual agreement; however, no new entity is created and the original organisations remain intact
      - Franchising
        
        A franchise is a legal agreement whereby a franchisee buys the rights to use the name and business model of a franchisor. The franchisee pays for the franchise (often both upfront fees and royalties), and must also respect the norms and practices of the franchise. The franchisor usually supports the franchisee with franchise-wide purchasing, marketing, 'best practices', and training.