Internal and

External Growth
Arianna Jaramillo
2nd Bacc G1
 01.

Find 3 Advantages and 3

Disadvantages of EACH External
Growth Arrangement (M&AS, Joint
Ventures, Strategic Alliances and
Franchises)
M&AS,
Advantages Disadvantages
More opportunities in the A lot of work is needed to
market due to the possible organize the workers and
growing employees.

Reduces the competition Creates possible debts for the

company.

Lets your company grow as a More difficult to take decisions,

bigger company because you have to agree with
other people.

Joint Ventures
Advantages Disadvantages
Having a partner makes it Conflicts can be caused due to
easier to achieve the company the the difference of the
goals earnings amount

Easier to get loans Other companies bad decisions

affect yourself

The company gets support from If things go wrong there is a big

other companies in the case of chance that you will lose a big
being in a difficult situation amount of money
Strategic Alliances
Advantages Disadvantages
Your partner could help you One company could benefit
compliment your business more than the other

You could make an alliance If the alliance ends, the other

with your competition so both company will know your ways
are more powerful together of working, and could use it to
their favor

Costs and Risks are reduced Profits will need to be shared

Franchises
Advantages Disadvantages
If one of the franchises fails, it A big amount of money needs to
will not affect the others. be invested

Because of the fact that is You can't make any changes as

owned just by one person, it is you could with your own
easier to take decisions business.

The products and costs are the It's more difficult to be aware of
same all the rulement
 02.

Write 2 examples of companies for

EACH type of External Growth
Arrangement. (M&AS, Joint Ventures,
Strategic Alliances and Franchises)
M&AS,
● Google's acquisition of Android.
● Disney's acquisition of Pixar and
Marvel,

Joint Ventures
● Microsoft and General Electric.
● BMW and Brilliance Auto Group.

Strategic Alliances
● Spotify and Uber
● Starbucks and Barnes & Noble

Franchises
● Dunkin' Donuts.
● Wendy's