1. TOPIC: Topic 1: Business Organization and Environment
LESSON TITLE: Business Growth
COMPETENCY FOCUS:
Entrepreneurship (S4): To develop your entrepreneurial skills in preparing a realistic proposal for a new business start-up. You will understand the process a business will have to go through when starting up, including the underlying principles of starting a business.  
[IB Learner Profile Development: Inquirer]
Learning Objectives
By the end of the lesson, you should be able to…
LO1) To define the term ‘growth’
LO2) To explain using examples, the difference between internal and external growth
LO3) To evaluate joint ventures, strategic alliances, mergers and takeovers as methods of achieving a firm’s growth objectives.
SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development.
CRITICAL THINKING KEY:
Knowledge Application Analysis Evaluation

2. Let’s Re-cap!
How can businesses grow?

3. Business Growth
Internal Growth External Growth Mergers Takeover

4. Business Growth Internal Growth (Organic Growth) can be done by:
Opening new branches
Opening new shops
Opening new factories
Building a bigger factory/production plant

5. Business Growth External Growth can be done by:
Merging with another business (competitor perhaps?). Both businesses are now controlled by one Board of Directors.
Takeover/acquisition of another business. A company buys over 50% of the shares and therefore becomes the controlling owner.

7. Other types of growth… Joint Venture Strategic Alliance Merger
Takeover
Franchising

8. Joint Ventures
This is when 2 or more businesses agree to work closely together on a particular project and create a separate division to do so.
Advantages:
Costs and risks are shared
Shared skills, strengths and knowledge
More powerful to enter new markets (i.e. international markets)
Disadvantages:
Styles of management and culture do not blend well
If one partner fails, the JV is at risk

9. Strategic Alliances
An agreement between firms in which each agrees to commit resources to achieve an agreed set of objectives.
[Therefore working in partnership with someone or another organisation for mutual benefit]
Examples of alliances:
With universities
With suppliers
With competitors

10. Franchising
A business that uses the name, logo and trading systems of an existing successful business i.e. Subway, McDonalds. Involves a ‘Franchisee’ and a ‘Franchisor’.

11. Jessop’s Case Study
What do we already know about Jessops? Complete your entry card!

12. Jessop’s Case Study
Read the following case study: Code the text using the key!
? You don’t quite get that!
 You understand this!
I need to ask about this!
This surprises you!

13. Jessop’s Case Study
Research Task: Each student is given a method of external growth: -Joint Venture -Merger/Acquisition -Takeover -Strategic Alliances [Collate your research using Google Docs & feedback to the rest of the group]

14. At the end of the lesson…
Don’t forget to complete your exit card before you leave!