Expansion (economy)

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Expansion ( latin expandere , "stretching") is in the economics the economic growth , in the Mikroökonomie the market growth or in the business administration the business growth .

General

The term expansion therefore stands for different concepts in economics . In economics, it is used in connection with economic growth (cf. growth theory ), but mostly in connection with business cycle theory as an expansion phase . As well as the expansion is cyclical phase of economic recovery , respectively. In this sense, expansion denotes positive assessments of economic agents , favorable production conditions and an overall increase in production . In monetary policy , expansion refers to the expansion of the monetary base (monetary expansion). In business administration a distinction is made between internal growth through an increase in market share and external growth through company acquisitions or mergers .

In addition, expansion can also generally represent the growth of a nation (e.g. England in the 17th century), a company or even a market .

An expansion policy is operated today as an international expansion by companies in order to gain new sales markets. Expansion policy , including territorial expansion, in the traditional sense, on the other hand, means colonialism (the mostly state-sponsored occupation of foreign territories, 19th century). The international expansion of the markets is (in addition to the division of labor ) an essential condition of free trade (see also globalization ).

Economics

Business cycle theory

In classical business theory, it is one of four phases (alongside boom, recession and depression). In this period of economic upswing, rising production , falling unemployment and interest rates and optimistic forecasts of economic development are formed.

Monetary Policy and Fiscal Policy

Expansive monetary policy is a monetary policy measure of the expansion of the money supply or the money supply of a central bank. This is an attempt to achieve economic policy goals. A tightening of the money supply is known as a restrictive monetary policy. The expansionary fiscal policy, on the other hand, is a fiscal policy measure by the state that either leads to an increase in government spending or to a reduction in taxes. This causes an increase in the budget deficit.

In this sense, expansion simply means increasing or strengthening the respective policy orientation.

Business administration

Expansion in the economy: The discounter Aldi , which came from Germany, expanded all over the world after the successes of Aldi Nord and Aldi Süd in Germany.In 2017, Aldi Nord and Aldi Süd are the most successful discount groups worldwide according to their gross sales (here an Aldi branch in London ).

In business administration deals with expansion in connection with companies. Expansion can refer to the process of spreading a successful innovation , strategy or product. Other dimensions are opening up new markets or opening new branches. But entrepreneurial expansion can also be identified based on the number of employees or market shares as well as investments .

In retail , expansion is the search for suitable locations, taking into account socio-demographic data such as purchasing power , centrality , unemployment rate or number of inhabitants (e.g. from GFK), checking the locations according to their own success factors (target locations, structural requirements, marketing , Contract terms). A large number of broker offers are usually recorded in databases and checked for existing offers in order to avoid paying double commissions. At best, all evaluation steps and collected information are digitally recorded and used for further management. The retail environment of the locations can be visualized in maps using various technologies (MapPoint, Google Maps or Bing).

Product policy and management

Expansion can definitely be counted as part of a product policy strategy (expansion strategy). A geographical expansion could mean the development of individual markets or the world market. However, there is some conceptual overlap in this area. The diversification strategy also describes an expansion of the range , for example new products for new markets.

In the mail order business , expansion strategies describe the use of a core competence in order to penetrate a market segment . Possible combinations for expansion strategies in this case are the product range strategy, the target group strategy or the fulfillment strategy .

Location strategies are divided into expansion, concentration and contraction strategies, among other things. Investive expansion strategies are sometimes divided into organic and inorganic expansion. Inorganic here means outside of the regular business activity, such as a takeover (see Mergers & Acquisitions ). Organic strategies, on the other hand, are the expansion of the branch network , branch (economy) | branches, production areas or the number of employees. The acquisition strategy is also known as external expansion , as opposed to the possibility of internal expansion , such as new facilities and workers.

The following terms are also used in this context:

  • Greenfield expansion : means a " greenfield " investment , i. H. Buildings have to be built, possibly infrastructure (road links, parking spaces, etc.) must also be created.
  • Brownfield expansion : refers to an investment on a property with or without a building that was formerly used commercially and is ready for new use. Conversion / new building measures or renovations may be necessary for this. The site can be polluted by its previous use .
  • Greyfield expansion : refers to an investment on an abandoned property that has already been built on (see conversion ). Furthermore, there is essentially an infrastructure (road connection, parking lots, sewerage, etc.). There is no environmental pollution ( soil contamination, etc.) that would first have to be remedied.

literature

  • Dierkes, Meinolf. Productivity and expansion. Duncker & Humblot, 1971.
  • Fischer, Wolfram. Expansion, Integration, Globalization: Studies on the History of the World Economy. Vol. 125. Vandenhoeck & Ruprecht, 1998.

Web links

Wiktionary: Expansion  - explanations of meanings, word origins, synonyms, translations

Individual evidence

  1. ↑ Arthur Strassl et al., The Laws of Economic Growth . Duncker & Humblot, 1982. p. 194
  2. ^ Manfred OE Hennies, General Economics for Business Economists: Money, Business Cycle, Foreign Trade, Economic Growth and Distribution . Vol. 3. Vol. 3. BWV Verlag, 2003. P. 271.
  3. ↑ Verlag Dr. Th. Gabler, Gablers Wirtschaftslexikon , Volume 2, 1984, Sp. 1420
  4. ↑ Heinz Kleinen, The expansion of medium-sized trading companies through large mergers . Vol. 32. Springer-Verlag, 2013.
  5. ↑ Uwe Sachse, Growing through international expansion: how you can successfully expand your international business . Springer-Verlag, 2013.
  6. ↑ Hans-Dieter Haas / Simon Martin Neumair (eds.), International Economy: Framework Conditions, Actors, Spatial Processes . Oldenbourg Verlag, 2006. p. 19.
  7. ↑ Horst Tomann, Economics: an introduction to economic thinking . Springer-Verlag, 2005. p. 6
  8. ^ Lothar Wildmann, Economic Policy: Modules of Economics . Vol. 3. Walter de Gruyter, 2012. p. 83.
  9. ↑ Uwe Sachse, Growing through international expansion: how you can successfully expand your international business . Springer-Verlag, 2013. p. 104.
  10. ↑ Jan Thieme, Mail Order Management - Basics, Processes and Success Strategies for Practice , 2., act. and additional ed., Wiesbaden, 2006, p. 331.
  11. ↑ Kai-Ingo Voigt, Industrial Management: Industrial Management from a Process-Oriented View . Springer-Verlag, 2008. p. 237.
  12. ^ William Megginson / Scott Smart, Introduction to corporate finance . Cengage Learning, 2008, p. 865.