Methods of Expansion and Segmentation

Expansion is making a company bigger and much better. Merging is combining two companies, often in the same line of business for example Orange merging with T-Mobile to form EE- Everyone, everywhere. Organic growth is when a company grows without a merger or takeover occurring within them. Franchising is a worldwide well known brand for example Adidas. A takeover is the complete removal of a company's employees and employers and another company acquires the company.


The Knowledge

Pros of Merger/ Take over

Liability, Ideas, spending choices, marketing, recognition, income and rival superiority.

Cons of Merger/ Take over

Purpose of the company changes, jobs are lost, owners change, wages are lowered for kept employees, power is juggled aroubnd, the company image is 'stained' (like Cadbury).

Pros of Organic Growth

Changeable status, expandable, almost guaranteed succession, financial stability, no chance of hurting the community (Cadbury).

Pros and Cons of Franchising

Pros: Support, financial rewarding, first class training program [McDonald's]. Cons: expensive licence fee, contract says you have to work for 20 years minimum if you own it [McDonald's]