Question

If demand for a firm's product grows, the firm will need to grow to maintain market share. The two objectives of a growth strategy is to demand and production costs. (put a comma between your answers)

Answer 1

Answer:

Two objectives of a growth strategy are to increase demand and to lower production costs.

Explanation:

There are several types of growth strategies like market penetration, market development, product development, and vertical integration. In all cases, the main goal is to increase the demand for the firm's products (which in turn, increases sales revenue, and profit), while lowering production costs at the same time.

This is simply because the more the firm sells, at the same time that production costs are decreased, the more sales revenue the firm will obtain. Profit does depend on many other factors other than sales revenue (like tax liabilities or interest payments), but a large amount of sales revenue tends to be a good indicator of corporate profit.