What is one method of achieving internal growth?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

Achieving internal growth primarily involves strategies that enhance a company's ability to increase its market share, revenue, or overall business size from within its existing operations. Launching new products or services is a quintessential method of driving internal growth because it allows a business to tap into new revenue streams and attract different customer segments. By innovating and expanding their inventory, companies can meet changing consumer demands, differentiate themselves from competitors, and increase their sales volume.

Introducing new products or services also demonstrates a proactive approach to business development, which can enhance the company's reputation and brand loyalty. As customers have an opportunity to experience new offerings, it can lead to repeat business and positive word-of-mouth marketing.

In the context of the other options provided, decreasing the workforce, cutting advertising budgets, and focusing only on existing customers do not contribute to internal growth. Instead, they may limit a company’s ability to expand and innovate, potentially reducing its market presence instead of enhancing it.

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