What does external growth typically involve?

External growth typically involves a company expanding its reach and capabilities by acquiring other businesses or merging with them. This strategy allows a company to rapidly increase its market share, diversify its product offerings, and access new markets or resources that it might not be able to develop internally. Mergers and takeovers can lead to economies of scale, increased revenues, and improved competitive positioning in the market.

While increasing employee efficiency, reducing production costs, and improving internal processes are important aspects of managing a business, they are more closely associated with internal growth strategies. Internal growth focuses on enhancing operations within the existing company structure, whereas external growth actively seeks to expand the company's footprint through partnerships, acquisitions, and mergers. Thus, option B accurately captures the essence of external growth strategies.