A firm faces two choices in pursuing a growth strategy:

Question

Quizplus · Accepted Answer

The best choice in pursuing a growth strategy would be to focus on both internal and external growth. Internal growth involves expanding existing products, services or markets, whereas external growth involves mergers, acquisitions, partnerships or strategic alliances. By pursuing both options, the firm can diversify its revenue streams, gain economies of scale, and increase market share in new and existing markets. This approach is less risky and more cost-effective than trying to expand internationally or nationally before fully leveraging existing opportunities.

A Firm Faces Two Choices in Pursuing a Growth Strategy