Major Ways Of A Company Can Grow

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1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. Based on the study for this week, I shall focus on company growth in regard to economies of scope which is basically about widening the scope of influence. With regard to economies of scope, comes the need to expand into international markets. In this era of globalization, every individual and company is affected by the development of markets and economies other than the ones in their countries. The benefits of venturing into global markets outweigh the risks that could be associated with such an expansion. Understanding the functioning of the global financial market place is a key element in of knowledge and skill base that is vital for furthering business in the international market. Many firms struggle for long periods to make their foreign ventures a success however the key to success is to stay in control of the process of internationalization. Firms need to follow a set of basic principles that will cause their expansion to unfold in a consistent pattern. Firms need to expand by means of a consistent pattern rather than through individual ventures. Firms have to expand following a logical path where established affiliates act as stepping stones from which to launch further expansions. The dynamics of the international arena require a firm to be flexible in responding to opportunities and threats when and wherever they emerge. A company’s best
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