Reference no: EM133211456
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.