Expanding A Business
Specification:
1.1 Expanding a Business • benefits and risks of expansion • methods of expansion • conflict between stakeholders |
Candidates should understand the benefits and risks to a business of expanding and be aware of methods of expansion used by large businesses, for example: mergers and takeovers, organic growth and franchising.
Candidates should consider the ways in which the growth of a business can impact on its stakeholders. Candidates need to consider the ways in which stakeholders might react to protect their own interests. |
Internal (Organic) Growth
Lesson Objectives:
- To understand what organic growth is (D-E)
- To analyse the advantages and disadvantages of organic growth (B-C)
- To apply our knowledge to real businesses and evaluate their success (A*-A)
- To understand what organic growth is (D-E)
- To analyse the advantages and disadvantages of organic growth (B-C)
- To apply our knowledge to real businesses and evaluate their success (A*-A)
Starter activity: How many different ways can you think of, that a business can expand?
Internal growth tends to be slower than external growth but may be more manageable because of this. When businesses join together their size changes suddenly and it can be difficult to manage with new staff and different ways of doing things.
organic_growth_1.doc | |
File Size: | 25 kb |
File Type: | doc |
Activity: Look at the different strategies businesses can you to grow organically. Split into groups and take one of the methods and research a business that has successfully used this method and explain why it has worked so well.
Plenary: Memory quiz of +/- of organic growth.
External Growth (Integration) - Mergers & Takeovers
Lesson Objectives:
- To understand what external growth is (D-E)
- To analyse the advantages and disadvantages of external growth (B-C)
- To apply our knowledge to real businesses and evaluate their success (A*-A)
- To understand what external growth is (D-E)
- To analyse the advantages and disadvantages of external growth (B-C)
- To apply our knowledge to real businesses and evaluate their success (A*-A)
Starter activity: Can you think of 5 examples of company takeovers and 5 examples of company mergers?
External growth is also called integration. It occurs when firms join together. This can be either a merger or a takeover.
A merger occurs when two or more firms join together and create another joint business. An example of this could be Disney-Pixar. In a merger, the shareholders of each individual firm become shareholders in the new, bigger business.
A takeover (or acquisition) occurs when one firm gains control of another and buys it up. An example could be Reebok selling their shares to Adidas and they are no longer owners of the business.
A takeover (or acquisition) occurs when one firm gains control of another and buys it up. An example could be Reebok selling their shares to Adidas and they are no longer owners of the business.
S+C question: What do you think are the advantages and disadvantages of mergers and takeovers? Why don't Arsenal merge with Spurs?
integration.docx | |
File Size: | 40 kb |
File Type: | docx |
Plenary: Was the Kraft-Cadbury takeover a success and why?
Franchises
Lesson Objectives:
- To understand how growth through franchising works (D-E)
- To analyse the advantages and disadvantages of franchising (B-C)
- To apply our knowledge to real businesses and evaluate their success (A*-A)
- To understand how growth through franchising works (D-E)
- To analyse the advantages and disadvantages of franchising (B-C)
- To apply our knowledge to real businesses and evaluate their success (A*-A)
Starter activity: Complete the fill in the gaps worksheet
franchises_starter.doc | |
File Size: | 27 kb |
File Type: | doc |
Activity: Look at the advantages and disadvantages of franchising. Apply this to Subway.
franchises_-_worksheet.docx | |
File Size: | 15 kb |
File Type: | docx |
S+C Plenary:
crumps_crumpets_franchise_plenary.docx | |
File Size: | 111 kb |
File Type: | docx |
Growth and Stakeholders
Lesson Objectives:
- To explain the ways in which stakeholders protect their interests (D-E)
- To understand the advantages and disadvantages of growth for stakeholders (B-C)
- To evaluate the impact of stakeholders on the growth of a business (A*-A)
- To explain the ways in which stakeholders protect their interests (D-E)
- To understand the advantages and disadvantages of growth for stakeholders (B-C)
- To evaluate the impact of stakeholders on the growth of a business (A*-A)
Starter activity:
What different stakeholders can have an effect on a business and why?
growth_and_stakeholders.doc | |
File Size: | 29 kb |
File Type: | doc |
how_can_stakeholders_protect_their_interests.doc | |
File Size: | 27 kb |
File Type: | doc |
Plenary: Which stakeholders are affected by the potential 3rd runway? How might certain stakeholders try and affect this potential growth? What methods could they use?
stakeholder_conflict.pptx | |
File Size: | 640 kb |
File Type: | pptx |
task__bestco_stakeholder_activity_1.docx | |
File Size: | 16 kb |
File Type: | docx |