External Growth | Size of Business | A Level Business 9609
Channel: Alt Academy
Date: 2022-10-19

Welcome, Cambridge A Level Business students, to our enlightening video on external growth strategies for businesses! In this tutorial, we'll delve into the concepts of mergers and takeovers as methods for expanding a business's size and operations. This lesson will enable you to:

1. Define Internal and External Growth: We'll begin by defining the terms "internal growth" and "external growth" within the context of business expansion. You'll understand how internal growth involves expanding a business's operations through increased sales and production, while external growth entails expanding by merging with or acquiring other businesses.
2. Explain Processes Involved in Mergers and Takeovers: We'll explore the processes involved in both mergers and takeovers as external growth strategies. You'll learn how mergers involve the combination of two or more companies to form a new entity, while takeovers entail one company acquiring control over another through purchasing its shares.
3. Analyze Pros and Cons of Mergers and Takeovers: Through insightful analysis, we'll examine the advantages and disadvantages of opting for mergers or takeovers as methods of business growth. You'll gain an understanding of the potential benefits, such as increased market share and economies of scale, as well as the drawbacks, such as integration challenges and cultural clashes.
4. Apply Concepts of Integration and Synergy: We'll delve into real-world examples of successful business mergers, illustrating how integration and synergy contribute to their success. You'll learn how businesses can achieve greater efficiency and competitiveness through the combined strengths of merged entities.
5. Evaluate Challenges Faced by Businesses and Propose Solutions: Lastly, we'll discuss common challenges encountered by businesses during mergers and takeovers, such as cultural differences and employee resistance, and propose potential solutions to mitigate these challenges. You'll gain insights into effective strategies for managing the complexities of external growth initiatives.

By the end of this tutorial, CAIE AS Level Business students will not only comprehend the concepts of mergers and takeovers but also be equipped to analyze their implications and challenges in the context of business expansion.

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