Explain why using an internal growth strategy can be both an advantage and a disadvantage for a company .

The management of the company will have full control on the growth process in terms of speed and capital injected, and no organisational culture or independence will be lost, as there will be no need for consultation with another organisation (mergers/takeovers, joint ventures or strategic alliances). However, internal growth is a much slower process compared to external growth, as many companies (due to their size and/or market share) are not in the position to compete with existing competitors in the industry, who are likely to be strongerMoreover, shareholders might not approve internal growth due to the large amount of money required and long time for dividends to be repaid. 

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Answered by Lavinia M. Business Studies tutor

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