Organic Growth Case Study

With globalization & liberalization opening up economies and shaping the world as one global village, competition has been on the rise & it is becoming harder day by day for firms to survive & flourish in this competitive environment. And for surviving in such an environment, where many companies go bankrupt any day, achieving business growth is a necessity, not an option. And for achieving growth companies have to diversify to multiple markets & multiple businesses, in order hedge their risks & keep growing & while doing so they have to be very quick, otherwise competition takes over the market & rest is history.

Growth is generally measured in terms of revenues, profits, capabilities, assets etc &there are two ways through which a company

This type of growth takes time & the company has to make most efficient use of its resources & capabilities & these also need to be nurtured for sustainable growth in the long run

Inorganic Growth on the other hand is the growth that results from mergers, acquisitions, joint ventures. This is an accelerated approach for achieving growth, where one company acquires, merges or forms a JV with another firm in order to have quick access into new markets, new geographies and/or gaining synergies and enhancing the competitive advantage of the firm

While firms try to achieve both organic & inorganic growth, with apple being one of the best examples of organic growth, the focus on inorganic growth in increasing as it can give a sudden boost to a company’s growth & the increase in inorganic growth (through M&As) is partly replacing organic growth. But inorganic growth doesn’t come without a cost & if not properly managed then the cost can be much higher than the expected benefits. This indicated the importance of carefully balancing organic & inorganic growth and managing inorganic growth with great caution

II. Mergers &