Expanding a business — AQA GCSE Study Guide
Exam Board: AQA | Level: GCSE
This topic covers the fundamental ways businesses grow, either organically from within or externally through mergers and takeovers. Understanding how expansion impacts average unit costs—through economies and diseconomies of scale—is crucial for maximising marks in GCSE Business exams.

Overview
Expanding a business is a core topic in GCSE Business Studies. It explores the motivations behind business growth, the specific methods businesses use to expand, and the financial consequences of that growth. Examiners expect candidates to distinguish clearly between organic (internal) growth and external growth. Furthermore, a deep understanding of economies of scale—and the contrasting diseconomies of scale—is essential. You must be able to explain how growth affects the four functional areas: operations, human resources, marketing, and finance, and calculate average unit costs accurately.
Methods of Growth

Organic (Internal) Growth
What it is: Growth from within the business using its own resources.
Methods:
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