Inorganic Growth Essay

900 Words2 Pages

QUESTION 1: DESCRIBE TWO MAJOR WAYS IN WHICH A COMPANY CAN GROW.GIVE EXAMPLES TO ILLUSTRATE THE TWO WAYS OF GROWING.

The two major ways by which business can grow is know as organic and inorganic growth. When a company grows by increasing the turnover of the existing business, it is said to have grown in an organic manner. In other words, when business grow by acquisition or by joining two or more companies together by the way of merging, takeover and so on, we say that such growth is inorganic. A typical example of inorganic growth is the one that occurs in Microsoft. It is one of the companies that has grown by mergers, takeover and acquisition of over hundred other companies since 1986. Unlike the case of Apple, were growth is …show more content…

This is a clear evidence that they acquired the financial resources to expand. Also, they had the proven management system in their service and textile maintenance. However, Berendsen was also a leader in textile services in the other end of the region. Davis Service Group could buy into established trend and customer relation by building on Berendsen local experience and local market contacts. The barriers that the two companies usually faced were overcome in this …show more content…

The businesses are familiar with each other. They had been able to learn a lot from each other. They had share lots of business practices and ideas. Since organic growth refers to a situation that a company is able to increase the turnover of the existing business. The huge growth and success recorded by Sunlight and Berendsen were organic in nature. They built and grow on the existing resources which was the only available option of growth at the moment. During this time, there were few companies suitable to takeover in many Eastern European countries because most businesses were owned and control by government. They had substandard equipment and therefore could not be acquired by the textile company.

QUESTION 4: IF THE COMPANY WERE TO EXPAND INTO NEW AREAS OF THEGLOBE, WHERE WOULD YOU RECOMMEND AND WHY? WHAT FACTORS MIGHTENCOURAGE OR DISCOURAGE THIS CHOICE?
I think It will be the best opportunity to expand in China market and Nigeria market if the company has it way to expand in the the near future. This is because the market in China and Nigeria have a lot of scope even more than the business in most European countries. Since, the influence and obstruction from the government will not be there, they will have great opportunities of running business and making

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