1.3 Business size

In this chapter you will learn -

1.3.1 Measurements of business size 

• the appropriateness of different methods of measuring the size of a business 

1.3.2 Significance of small businesses 

• the advantages and disadvantages of being a small business 

• the strengths and weaknesses of family businesses 

• the importance of small businesses and their role in the economy 

• the role of small businesses as part of the industrial structure in some industries 

1.3.3 Business growth 

• why and how a business might grow internally (organic growth) 

• the different types of external growth through merger and takeover: horizontal, vertical (backward and forward), conglomerate diversification, friendly merger, hostile takeover 

• the impact of a merger/takeover on stakeholders 

• why a merger/takeover may or may not achieve objectives 

• the importance of joint ventures and strategic alliances as methods of external growth