Evaluating Business Growth: Overtrading, External Growth, and Retrenchment Challenges

The video explores various aspects of business growth, including overtrading, cash flow challenges, and the balance between long-term and short-term objectives. It discusses the risks associated with external growth through takeovers, using the Royal Bank of Scotland's acquisition of ABN Amro as a case study. The video also covers retrenchment, highlighting its impact on staff morale and productivity, and suggests strategies like natural wastage to mitigate these effects.

What is the term used to describe when businesses try to grow too quickly?

How can cash flow problems be created during business expansion?

What are the implications of cash inflows and outflows for a business?

What strategies can businesses use to forecast their cash flow?

What long-term objectives might a business sacrifice when expanding?

What was the rationale behind Arsenal Football Club's decision to build the Emirates Stadium?

What are the risks associated with external growth through mergers and acquisitions?

How can retrenchment impact employee morale and productivity?

What is natural wastage and how can it help a business during tough times?

What factors should businesses consider when evaluating the impact of growth and retrenchment?