This growth strategy involves the right to trade using another company’s products, brand name and corporate logo.
Franchising
This form of external growth involves two or more companies agreeing to form a single, larger company thereby benefiting from operating on a larger scale.
Merger
What is one factor causing diseconomies of scale?
What is poor communication, poor managerial coordination, poor employee morale, bureaucracy, too many meetings, bad organization
These are cost-saving benefits enjoyed by a business as it increases the size of its operations, i.e. lower average costs (the cost per unit).
Economies of Scale
These are formed when two or more organizations join together to benefit from external growth without having to set up a new separate legal entity.
Strategic Alliances