-greater sales, but neither loses its legal identity

-cost and risks are shared

-bring different areas of expertise, and create a powerful combination

Disadvantages:

- have to share profit

-might not achieve the desired outcome

-management of two businesses might be different

-business can disagree

Kiara

• Faster speed of access to new product or market areas
• Increased market share / increased market power
• Access internal economies of scale (perhaps by combining production capacity)
• Secure better distribution channels / control of supplies
• Acquire intangible assets (brands, patents, trademarks)
• Overcome barriers to entry to target new markets
• Defend a business against a takeover threat
• Enter new segments of an existing market
• Generate new skills, experience and customers.

LIMITATIONS

The main disadvantage of external growth is cost. The cost of external growth tends to be relatively higher than internal growth.

Raina

Raina

-Responsible to clients, significant others and social responsibility.

- Aware of rapid technological advancements, competitor’s products and services, the effects of globalisations, and opportunities and threats within their own industry, to name the most obvious. Leaders must also keep a constant eye on the mission, vision, values, culture, strategy and goals of their own organisation.

Raina

- Allows a business of individual to weigh up a complex situation or decision

-  They take very complex scenarios and allow for a rapid and easy assessment

Disadvantages:

- Highly simplistic and does not factor in the external environment

Selling more of the same things to more of the same customers

2. Market Development:

Selling more of the same things to different customers

3. Product Development:

Sellingnew products or services to the same customers

4. Diversification

Selling new products or services to different customers

Andrea

Tesla need to make sure that their assets are protected or else they may have some copycats in their design and concept.