COMM 320 Chapter Notes - Chapter 14: Complex Differential Form, Uptodate, Franchising
23 Oct 2016
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Internal growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion, with the purpose of increasing sales revenue and profitability. The distinctive attribute of internally generated growth is that a business relies on its own competencies, expertise, business practices, and employees (also called organic growth). It can be limited when companies (cid:498)hit the wall(cid:499) and might have to rely on external growth. Incremental, even-paced growth: can adjust to changing environmental conditions. Provides maximum control: maintain control over the quality of its products and services. Allows firms to promote from within: powerful tool for employee motivation. Slow form of growth: does not permit a firm to develop competitive economies of scale fast. Need to develop new resources: internal innovation has many positive attributes, it is typically a slow, expensive, and risky strategy. Investment in a failed internal effort can be difficult to recoup.
