There are two ways in which a firm can increase in size
Internal growth (Natural or Organic)
Involves a firm increasing the market for its current products or
diversifying into other products
This could be franchising and increasing the size of existing plants or by opening new ones.
Example: McDonalds opening more outlets throughout the world
External growth allows a firm to increase its size more quickly than internal growth.
With internal growth, however, there is more control over the size of the firm. There
is a risk that external growth may take a firm past its optimum size.
External growth
This involves the firm joining with another firm/firms to form one firm through a merger or a takeover