• Business growth is important for any company looking to expand its operations, increase its market share, and improve profitability.
  • In Zimbabwe, there are several methods of business growth that companies can utilize to achieve these goals.
  • For Advanced Level Business studies you are supposed to know about six ways of business growth in Zimbabwe, including merger, takeover, vertical and horizontal integration, franchising, and diversification
  • You should know that some of these methods of growth are identical or very similar
  • For example, mergers and takeovers are largely regarded as being one and the same although there are some nuanced differences between them
  • Also, all mergers and takeovers can be described as horizontal, vertical or conglomerates
  • Vertical mergers and takeovers can also be described as either backward or forwards
  • For each of these growth methods, you are supposed to know the features of each growth method, its advantages and disadvantages
  • To find notes on each of these growth metods you can click on them below:
  • We have discussed the advantages of being a large business and the disadvantages of a business being large elsewhere. You can go to the Business Studies home page (see below)
  • Reasons for business growth:
    • Collaboration: Companies can share research facilities and pool ideas to develop innovative products and services that meet the needs of their customers.
    • Economies of scale: As a business grows, it can benefit from economies of scale by reducing the cost per unit of production, which can lead to lower prices for its consumers.
    • Cost savings: By pooling resources, businesses can save on marketing and distribution costs, which can improve their profitability and competitiveness.
    • Larger customer base: With growth, businesses can attract a larger customer base, which can help increase revenue and profits.
    • Higher market share: Business growth can also lead to a higher market share, which can provide a competitive advantage and help businesses expand.
  • Reasons against business growth:
    • Diseconomies of scale: When businesses grow too large, they may experience diseconomies of scale, where the cost per unit of production increases due to inefficiencies in operations. This can lead to higher prices for Zimbabwean customers, reducing demand.
    • Conflicts: Growth can also create conflicts among employees, management, and stakeholders over resources, power, and decision-making. These conflicts can negatively affect the performance and reputation of the business in Zimbabwe.

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