Usage and Context
Companies often grow externally by buying or joining with other firms. This way, they can quickly get bigger, enter new markets, or gain new technologies.
Frequently asked questions
What is organic and external growth?
Organic growth happens from inside a company, like when sales increase. External growth comes from joining with or buying other businesses.
What is external growth of firms through mergers and takeovers of other businesses?
External growth happens when a company gets bigger by merging with or buying another company. This can make them stronger or larger fast.
How is external growth achieved?
Companies achieve external growth by buying or merging with other firms. It`s a quick way to grow, enter new areas, or improve offerings.
Conclusion
External growth lets companies grow fast by acquiring or merging with others. It`s a way to quickly gain new resources, technologies, or market positions.