What are the advantages and disadvantages of organic growth in business?

Answer by  Dean (4035)

Advantage: organic growth costs nothing in terms of R&D, marketing and advertisting. Disadvantage: because it isn't inspired by a formula, principals are often at a loss to maintain it.

Answer by  y3636363 (1380)

Well organic growth can be a good thing because it shows that the company is creative but it also takes many people to start organic growth in the business.

Answer by  JohnAndrew (199)

The advantages are the strategic goals of the business can be achieved, there will be no clashes in culture, and is definitely a cheaper form of expansion. The disadvantages are that it takes longer, and the entire risk is on the business alone.

Answer by  Christian9247 (5042)

Some of the Advantages to organic business growth are 1. Organization and goals achieved! 2. No crashes in culture. 3. Cheaper compared to acquisitions. Some of the Disadvantages or organic growth are 1. Longer time for growth and development and number 2, far more risky than any other business. Both have their strengths and weaknesses.

Answer by  tamarawilhite (17883)

Organic growth in relatively unplanned, thus may be less efficient than a planned expansion. It is a reaction to customer demand, thus the company may not meet a spike in customer demand when it happens and thus lose business.