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(c) Assess the likely impact on Burts of its decision to grow the business organically. (12)Indicative content Knowledge 2, Application 2, Analysis 4, Evaluation 4
(c) Assess the likely impact on Burts of its decision to grow the business organically. (12)Indicative content Knowledge 2, Application 2, Analysis 4, Evaluation 4 Risk profile is lower. The business controls organic growth itself. Cash flow and liquidity is not put under strain. Organisation of the business is easier. . Avoids diseconomies of scale. Potential counterbalance . Does not benefit from knowledge of other business gained through inorganic growth. . Not capitalising on market opportunities abroad where demand is potentially income elastic. Economic growth means crisp market is getting larger. Not growing as fast as other manufacturers. Prevents the ability to exploit significant economies of scale
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