Impact on burts of decision to grow business organically

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Assignment:

Assess the likely impact on Burts of its decision to grow the business organically.

Indicative content Knowledge 2, Application 2, Analysis 4, Evaluation 4

. Risk profile is lower.

. The business controls organic growth itself.

. Cash flow and liquidity is not put under strain.

. Organisation of the business is easier.

. Avoids diseconomies of scale.

Potential counterbalance

. Does not benefit from knowledge of other business gained through inorganic growth.

. Not capitalising on market opportunities abroad where demand is potentially income elastic.

. Economic growth means crisp market is getting larger. Not growing as fast as other manufacturers.

. Prevents the ability to exploit significant economies of scale.

Reference no: EM133211456

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