What growth opportunity is ABC considering through internal growth?

• A. Acquisition of a competitor.
• B. Diversifying into consumer electronics retail.
• C. Construction of a second e-waste factory in a neighboring region in Country Z.
• D. Merging with a recycling startup.

Answer: (C)

Internal growth focuses on expanding the business using the company’s own resources and capabilities—increasing capacity, adding facilities, and improving efficiency within existing operations. Building a second e-waste factory in a neighboring region in Country Z is an internal growth move because it enlarges ABC’s current operations and production footprint without involving another company or entering a new, unrelated line of business. It leverages existing expertise in recycling and the same industry to generate more output from the same core business.

The other options involve external growth. Acquiring a competitor brings in another company and assets; diversifying into consumer electronics retail moves into a new market outside the current focus; merging with a recycling startup combines with another firm. These are external strategies, not internal expansion.