Growth Pros and Cons AS Level Business Studies 9609

You eliminate one You achieve economies
You are now able to rationalise

production – concentrating your
competitor and increase of scale. operations on one site as opposed
your market share and to two.
power
$5 $3 $10
You have more power over You have a guaranteed outlet to

suppliers and negotiate You can now control the sell your products and remove
promotion and retail prices of your competitor products from
lower prices. the shelves.
your products.
$4
$3 $5
As you now own the supplier, you You can now control the supply of
You can now control the quality, can both work together to components to competitors. You
quantity, price and delivery times research better ways of improving can increase prices or limit
of your supplies. that part of the supply chain, to supplies but will always prioritise
benefit both yourself and the your own retail business over the
supply business. competition.
$2
$5 $5
You rationalise your business –

By diversifying away from your
You can enter a new, faster closing down one office and
original industry, you reduce risk
growing market. making some managers
of failure.
redundant. This is bad publicity.
$10
$5
-$6
You have been investigated by the You lack experience in this

By reducing customer choice and
government because by merging industry. A successful
competitive pricing, customers are
with / taking over a competitor manufacturer may not be a good
unhappy.
you may have created a monopoly retailer!
business.
-$4 -$6 -$5
STAKEHOLDER STAKEHOLDER STAKEHOLDER
Workers face redundancy which Suppliers may have to offer lower

means the local community prices to the bigger integrated
Consumers have less choice and suffers higher unemployment. business.
may have to pay higher prices.
Brand Reputation Damage Brand Reputation Damage
-$5 -$10 -$2
Local community may suffer job Workers have greater job security More varied career opportunities
losses. because the business has other for staff.
secure outlets to sell its product.
Brand Reputation Damage MORE MOTIVATED STAFF
MORE MOTIVATED STAFF $5
-$5 $5

Consumers resent the lack of
More varied career opportunities
competition, sales reduce and Profits rise to benefit
for staff.
profits are lower. Shareholders shareholders. Share prices
sell shares, further reducing share MORE MOTIVATED STAFF increase.
prices. $5
-$10 $10
STAKEHOLDER
Risk is spread across more than Not Today! Not Today!
one industry, workers have more
job security. When another player tries to steal When another player tries to steal
your advantages, say NOT TODAY! your advantages, say NOT TODAY!
$5
Not Today!
When another player tries to steal
your advantages, say NOT TODAY!
Horizontal Horizontal Horizontal
integration integration integration
Horizontal Horizontal Horizontal

Backward Backward Backward

Vertical Vertical Vertical
Integration Integration Integration
Backward Backward Backward
Conglomerate Conglomerate Conglomerate

Conglomerate Conglomerate Conglomerate
Steal another players Steal another players Steal another players

entire set of pros and cons entire set of pros and cons entire set of pros and cons
for one type of business for one type of business for one type of business
growth. You do not growth. You do not growth. You do not
receive any money. receive any money. receive any money.
Forward Forward Forward

Forward Forward Forward
Each player has 4 ‘Type of Growth’ Each player should have a ‘Type of Each player should have a ‘Type of
cards. Collect 2 pros and one Growth’ card. Collect 2 pros and Growth’ card. Collect 2 pros and
stakeholder benefit for each one stakeholder benefit for each one stakeholder benefit for each
expansion type to complete the expansion type to win. expansion type to win.
set. The person with 2 complete Disadvantages replace ONE Disadvantages replace ONE
sets wins. Collect money for advantage. Collect as much cash advantage. Collect as much cash
advantages, pay fines for as you can. as you can.
disadvantages.
Each player should have a ‘Type of Each player should have a ‘Type of Each player should have a ‘Type of
Growth’ card. Collect 2 pros and Growth’ card. Collect 2 pros and Growth’ card. Collect 2 pros and
one stakeholder benefit for each one stakeholder benefit for each one stakeholder benefit for each
expansion type to win. expansion type to win. expansion type to win.
Disadvantages replace ONE Disadvantages replace ONE Disadvantages replace ONE
advantage. Collect as much cash advantage. Collect as much cash advantage. Collect as much cash
as you can. as you can. as you can.
You lack experience in managing a The supplying business you
supplier. Just because you are a bought may become complacent – You lack management experience
good retailer, does not mean you thinking they are ‘safe’ because in your acquired business sector.
will be a good manufacturer! they have a guaranteed customer.
They lack motivation.
-$10
-$7 -$8
Being spread across more than

one industry means you have less
focus on the direction of the Steal an advantage from any other Steal an advantage from any other
overall company. player. They should give you the player. They should give you the
financial benefit. financial benefit.
-$10
Steal an advantage from any other Steal an advantage from any other Steal an advantage from any other
player. They should give you the player. They should give you the player. They should give you the
financial benefit. financial benefit. financial benefit.
Steal an advantage from any other Steal an advantage from any other Give one of your disadvantages to
player. They should give you the player. They should give you the another player. They should pay
financial benefit. financial benefit. the fine directly to you.
Give one of your disadvantages to Give one of your disadvantages to Give one of your disadvantages to
another player. They should pay another player. They should pay another player. They should pay
the fine directly to you. the fine directly to you. the fine directly to you.

Growth Pros and Cons AS Level Business Studies 9609

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Growth Pros and Cons AS Level Business Studies 9609

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You eliminate one You achieve economies

You are now able to rationalise

You have more power over You have a guaranteed outlet to

You rationalise your business –

You have been investigated by the You lack experience in this

Workers face redundancy which Suppliers may have to offer lower

STAKEHOLDER STAKEHOLDER STAKEHOLDER

STAKEHOLDER STAKEHOLDER STAKEHOLDER

Horizontal Horizontal Horizontal

Backward Backward Backward

Conglomerate Conglomerate Conglomerate

Steal another players Steal another players Steal another players

Forward Forward Forward

Being spread across more than

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