Advantages Of Organic Growth

Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

There are two ways of growing a company that is organic and in organic. Organic growth is when expanding the business by natural way such as making profit and opening branches and hiring more staff. On the other hand when a business is growing inorganically, is when a company buys majority shares of another similar company or purchasing the entire company and operates as its own.

Example of an organic growth of a company would be MacDonald fast food chain. This company started from the scratch and expands its business within the region and expands overseas. They increase their revenue and invested on purchasing properties and increase

The managements know well how the business operates in the marketplace. However, in organic growth, there is always limited resource since the business runs in the same marketplace.

In inorganic growth, you will be able to acquire more assets and tackle new market place right away. At the same time, it could be overwhelming to handle more employees. You could be entering to marketplace where you don’t have experience with. This could lead to growth in different direction that you didn’t look forward to.

Businesses grow when they have the resources to expand and opportunities exist for growth. Explain how the acquisition of Berendsen provided such a good opportunity for the Davis Service Group.

According the Times 100 article about Davis, growing a company by international acquisition, Berendsen was operating in Denmark, Sweden, Norway, Austria, the Netherlands, Poland and Germany. This gave Davis Service Group an opportunity to expand their business to a new networks and new customer contacts in a new geographical areas mentioned

Most of the countries that Berendsen were operating speak English, which was an advantage for Davis Service Group. The business environment and cultures of the country where Berendsen were operating is similar to the UK where Davis Service Group established their business. On top of that European Union uses one currency that is Euro. This makes things easier for trading.

European Union market encouraged Sunlight and Berendsen business to grow organically that has increased their customers in the region to the point they eliminates competition from other firms. The living standards were growing faster as well as the trade within the continent. The other factor that encourages Sunlight and Berendsen to grow organically was the new business in hospitality sector that requires textiles such as, table clothing, bed sheets, towels and napkins, were opening the European Union region. Moreover, Poland was opening new manufactures that requires uniform outfit for