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10 Dec 2025

659

3 pages

GCSE Business Studies: Growing the Business (Topic 2.1)

user profile picture

Aimee Ford @aimeeh_ford

As businesses mature and expand, they face crucial decisions about how to grow, where to operate, and what... Show more

Sility Star.
Saturday, 1st April 2023.
2.1- Growing the business
Business growon
There are 2 main ways that businesses grow:
-internal growt

Business Growth and Finance

Want to know how your favourite brands got so massive? There are two main routes businesses take to grow bigger and stronger.

Internal growth (organic growth) happens when companies expand their own activities - think of a local restaurant opening new locations or Apple developing the next iPhone. It's slower but less risky and cheaper. External growth (inorganic growth) involves mergers or takeovers - like when Disney bought Marvel. This method is faster but riskier and more expensive.

Here's the brilliant part larger firms enjoy economies of scale. As output increases, the average cost per item actually decreases! This happens because big companies can buy supplies in bulk, afford better technology, and spread their fixed costs over more products. More profit means more money to reinvest and grow even further.

When it comes to funding growth, businesses have several options. Internal sources include retained profits and selling assets, whilst external sources involve share capital (for limited companies) and loan capital. Each method has different costs, risks, and repayment terms.

Quick Tip Remember that economies of scale are like buying in bulk at Costco - the more you buy, the cheaper each item becomes!

Sility Star.
Saturday, 1st April 2023.
2.1- Growing the business
Business growon
There are 2 main ways that businesses grow:
-internal growt

Changing Objectives and Globalisation

As businesses grow, their goals evolve dramatically. A startup might focus purely on survival, whilst an established company aims to enter international markets or expand its workforce.

Companies change their aims and objectives due to internal factors (like new technology or performance changes) and external pressures (market conditions or new legislation). This flexibility keeps them competitive and relevant.

Globalisation has transformed how businesses operate worldwide. Companies can now import supplies more cheaply from global markets, though this increases competition. They can export to massive international audiences and set up operations in countries with lower labour costs.

Multinationals - businesses operating across multiple countries - exemplify globalisation's impact. However, governments still control international trade through tariffs taxesonimports/exportstaxes on imports/exports and trade blocs (groups of countries with reduced trade barriers).

Remember SPICED when the pound is Strong, imports become Cheaper but exports become Dearer. This affects UK businesses' competitiveness abroad.

Real-World Connection Think about how Netflix started as a US DVD service but now operates globally with content tailored to different countries!

Sility Star.
Saturday, 1st April 2023.
2.1- Growing the business
Business growon
There are 2 main ways that businesses grow:
-internal growt

Ethics and Environmental Responsibility

Modern businesses can't just focus on profits - they must consider their impact on people and the planet too.

Ethical considerations involve moral principles of right and wrong, especially regarding international workers and suppliers. UK firms might exploit cheap labour in developing countries, but many now adopt codes of conduct limiting work hours and ensuring fair treatment. Fair trade sourcing helps developing country producers receive fair compensation.

Acting ethically creates trade-offs customers often prefer ethical businesses, leading to increased profits and positive shareholder effects. However, ethical suppliers can be harder to find and more expensive, potentially raising prices.

Environmental influences push businesses to become more 'green'. Companies reduce packaging, recycle more, dispose of waste carefully, and use efficient machinery. Being environmentally friendly can provide competitive advantages by attracting eco-conscious customers and reducing long-term costs.

The challenge lies in balancing sustainability with profit. Environmental improvements often require upfront investment, but they can lead to cost savings and better brand reputation over time.

Think About It Companies like Patagonia have built their entire brand around environmental responsibility - proving that ethics and profits can work together!

We thought you’d never ask...

What is the Knowunity AI companion?

Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.

Where can I download the Knowunity app?

You can download the app from Google Play Store and Apple App Store.

Is Knowunity really free of charge?

That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.

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Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines

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Most popular content: Business Growth

Most popular content in Business

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Students love us — and so will you.

4.9/5

App Store

4.8/5

Google Play

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user

 

Business

659

10 Dec 2025

3 pages

GCSE Business Studies: Growing the Business (Topic 2.1)

user profile picture

Aimee Ford

@aimeeh_ford

As businesses mature and expand, they face crucial decisions about how to grow, where to operate, and what values to uphold. Understanding business growth strategies, globalisation effects, and ethical considerations will help you grasp how modern companies navigate an increasingly... Show more

Sility Star.
Saturday, 1st April 2023.
2.1- Growing the business
Business growon
There are 2 main ways that businesses grow:
-internal growt

Sign up to see the contentIt's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Business Growth and Finance

Want to know how your favourite brands got so massive? There are two main routes businesses take to grow bigger and stronger.

Internal growth (organic growth) happens when companies expand their own activities - think of a local restaurant opening new locations or Apple developing the next iPhone. It's slower but less risky and cheaper. External growth (inorganic growth) involves mergers or takeovers - like when Disney bought Marvel. This method is faster but riskier and more expensive.

Here's the brilliant part: larger firms enjoy economies of scale. As output increases, the average cost per item actually decreases! This happens because big companies can buy supplies in bulk, afford better technology, and spread their fixed costs over more products. More profit means more money to reinvest and grow even further.

When it comes to funding growth, businesses have several options. Internal sources include retained profits and selling assets, whilst external sources involve share capital (for limited companies) and loan capital. Each method has different costs, risks, and repayment terms.

Quick Tip: Remember that economies of scale are like buying in bulk at Costco - the more you buy, the cheaper each item becomes!

Sility Star.
Saturday, 1st April 2023.
2.1- Growing the business
Business growon
There are 2 main ways that businesses grow:
-internal growt

Sign up to see the contentIt's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Changing Objectives and Globalisation

As businesses grow, their goals evolve dramatically. A startup might focus purely on survival, whilst an established company aims to enter international markets or expand its workforce.

Companies change their aims and objectives due to internal factors (like new technology or performance changes) and external pressures (market conditions or new legislation). This flexibility keeps them competitive and relevant.

Globalisation has transformed how businesses operate worldwide. Companies can now import supplies more cheaply from global markets, though this increases competition. They can export to massive international audiences and set up operations in countries with lower labour costs.

Multinationals - businesses operating across multiple countries - exemplify globalisation's impact. However, governments still control international trade through tariffs taxesonimports/exportstaxes on imports/exports and trade blocs (groups of countries with reduced trade barriers).

Remember SPICED: when the pound is Strong, imports become Cheaper but exports become Dearer. This affects UK businesses' competitiveness abroad.

Real-World Connection: Think about how Netflix started as a US DVD service but now operates globally with content tailored to different countries!

Sility Star.
Saturday, 1st April 2023.
2.1- Growing the business
Business growon
There are 2 main ways that businesses grow:
-internal growt

Sign up to see the contentIt's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Ethics and Environmental Responsibility

Modern businesses can't just focus on profits - they must consider their impact on people and the planet too.

Ethical considerations involve moral principles of right and wrong, especially regarding international workers and suppliers. UK firms might exploit cheap labour in developing countries, but many now adopt codes of conduct limiting work hours and ensuring fair treatment. Fair trade sourcing helps developing country producers receive fair compensation.

Acting ethically creates trade-offs: customers often prefer ethical businesses, leading to increased profits and positive shareholder effects. However, ethical suppliers can be harder to find and more expensive, potentially raising prices.

Environmental influences push businesses to become more 'green'. Companies reduce packaging, recycle more, dispose of waste carefully, and use efficient machinery. Being environmentally friendly can provide competitive advantages by attracting eco-conscious customers and reducing long-term costs.

The challenge lies in balancing sustainability with profit. Environmental improvements often require upfront investment, but they can lead to cost savings and better brand reputation over time.

Think About It: Companies like Patagonia have built their entire brand around environmental responsibility - proving that ethics and profits can work together!

We thought you’d never ask...

What is the Knowunity AI companion?

Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.

Where can I download the Knowunity app?

You can download the app from Google Play Store and Apple App Store.

Is Knowunity really free of charge?

That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.

10

Smart Tools NEW

Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines

Mock Exam
Quiz
Flashcards
Essay

Most popular content: Business Growth

Most popular content in Business

Most popular content

Can't find what you're looking for? Explore other subjects.

Students love us — and so will you.

4.9/5

App Store

4.8/5

Google Play

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user