Benefits and drawbacks of expansion
See Also
Advantages and Disadvantages Essay Topics for Students, IELTS & LearnersWhat are the applications and effects of solid expansion? | Homework.Study.comExpansion Definition & Meaning | YourDictionarygive two examples of expansion and contraction in soild,liquid and gases - Science - - 10127991The size of a business can be measured in terms of its sales, its value, or the number of employees it has. In order to expand, the business needs to increase one or more of these elements.
Benefits of expansion include:
- more power in the market
- increased status and reputation will make it easy to launch new products
- staff may be rewarded, which will increase motivation
- more money
Drawbacks of expansion include:
- slower decision making and communication as the grows
- messages may become distorted
- employees may become demotivated as they feel less important to the business
- the business becomes harder to manage as it may be based in a number of different locations
Businesses growth can occur through either internal (organic) growth or external (inorganic) growth.
