what are the reasons why organisations grow


What are the Reasons why organisations grow

  • Required to provide higher financial returns to investors e.g. increases the wealth of shareholders
  • Possible to achieve economies of scale improving competitiveness
  • Customers are demanding more of the good or service supplied
  • Managers desire it for example more power, status or reward
  • Growth allows more specialisation to increase efficiency

 

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Financial Management: what are the reasons why organisations grow
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