Define the following terms:
i. Public limited company
ii. Joint venture.
b. Differentiate between internal and external growth.
c. Analyse how GM’s current objectives may affect internal and external stakeholders.
d. Discuss the relationship between GM’s aims, objectives, strategies and tactics
.
Answers
A. 1.) A public limited company is a type of public company under United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland.
A. 2.) A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.
B. i) External growth : it is (also known as inorganic growth) refers to growth of a company that results from using external resources and capabilities rather than from internal business activities. ... The main advantage of external growth over internal growth is that the former provides a faster way to expand the business.
ii) Internal growth : Organic growth is also known as internal growth. It happens when a business expands its own operations rather than relying on takeovers and mergers. Organic growth can come about from: Increasing existing production capacity through investment in new capital & technology.