Topics covered: Sole trader and Partnership
• Business growth – internal and external
• Ansoff matrix
Mr Mobile owns a shop ‘Mobile Point’ which sells mobile phones and other electronics accessories.
MP has been very popular especially among young generation who love fancy accessories for their smart phones. Business revenue has been good and his investment gives a reasonable ROI.
To increase the ROI, and also take the advantages of growing demand for smartphones, Mobile has the following business expansion plans:
1. Open a new retail shop, in the busy central business district, to take the advantage of growing digital world.
2. Introduce exchange offers, and EMI schemes, for existing customers of MP.
3. Sign up for the dealership of other popular brands of mobile phones.
4. Sell mobile phones, and accessories online through popular ecommerce portals like, Click Kart, andA2Z Mobile.
5. Launch own new ecommerce website, along with physical shop ‘Mobile Point’. and,
6. Sell at MP other electronics items like tablets, laptops, camera, etc.
Questions:
a) With the help of an example from the case study, explain the meaning of the term ‘internal growth’ [2 marks]
b) Distinguish between internal growth and external growth [4 marks]
c) Using Ansoff matrix, identify business expansion plans of Mr Mobil. [4 marks]
