Lesson Plan

• Describe the concept of internal (organic) growth and differentiate it from external growth.
• Identify the main sources of internal growth and evaluate their relevance for a firm.
• Calculate a simple internal growth rate using the output‑growth formula.
• Analyse the advantages and disadvantages of internal growth in managerial decision‑making.
• Apply the internal‑growth framework to a real‑world case study.

• Projector or interactive whiteboard
• Slide deck covering internal growth concepts
• Handout with growth‑rate formula and Company XYZ case study
• Calculators or spreadsheet software
• Whiteboard markers and flip chart
• Sticky notes for group brainstorming

Begin with a rapid‑fire quiz asking students to match growth types (internal vs external) to short descriptions, activating prior knowledge. Explain that today’s success criteria are to be able to define internal growth, calculate its rate, and evaluate its pros and cons using a real‑world example.

1. Do‑now (5’) – Multiple‑choice quiz on growth types; teacher checks answers.
2. Mini‑lecture (15’) – Definition of internal growth, sources, and the growth‑rate formula; use slides and a flowchart diagram.
3. Guided practice (10’) – Students calculate a growth rate from sample output data in the handout; peer‑check answers.
4. Case‑study analysis (15’) – Small groups examine the Company XYZ example, identify internal‑growth routes, and discuss advantages/disadvantages; groups present key points.
5. Comparison activity (10’) – Whole‑class T‑chart comparing internal vs external growth; teacher summarises.
6. Exit ticket (5’) – One‑sentence response to “What is the biggest limitation of internal growth?” collected for assessment.

Recap the definition, sources, and trade‑offs of internal growth, highlighting the calculations completed earlier. Collect exit tickets and remind students to research a local firm that has pursued internal growth, preparing a brief paragraph for the next lesson as homework.