Which of the following is a disadvantage of growth by means of external growth strategies?
A) Diversification of business risk
B) Economies of scale
C) Getting access to proprietary products or services
D) Reducing competition
E) Loss of organizational flexibility

Question

Quizplus · Accepted Answer

External growth strategies, such as mergers and acquisitions, can lead to a loss of organizational flexibility. This is because the company is now larger and may need to operate differently to accommodate the new business. Additionally, there may be cultural clashes between the two companies, and it can take time for the new organization to find its footing.

Which of the Following Is a Disadvantage of Growth by Means