Please enable JavaScript.
Coggle requires JavaScript to display documents.
3.2.1 - business growth, Reasons for staying small, 3.2.3 and 3.2.4, 3.2.2…
3.2.1 - business growth
-
-
Retrenchment: where a business reduces the size or scale of a specific business area or element within the business operation.
-
-
3.2.3 and 3.2.4
-
Types of integration
Vertical: Acquiring a business at a different point in the supply chain in the same industry, like Apple acquiring one of its manufacturers.
Horizontal: A business acquiring another in the same point in t he supply chain in the same industry. Usually a competitor.
-
-
Brand diversification is when a business uses many different brands to reduce the concequences of one failing.
A benefit is that if one brand fails, the others will continue to operate as normal. This a strategy most often used by a parent corporation that owns multiple different brands.
A business can use these two methods as a strategy to achieve its objectives. A merger or takeover has the potential to diversify or complement their business objectives.
-