Advantages And Disadvantages Of Organic Growth

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There are basically two ways to grow a business organically and inorganically each has advantages and disadvantages.
Organic Growth-When a business is being grown organically it means that it is growing from within; building and using existing resources, for example if the business needed a strong technical support team. To grow organically the business would need to hire people and train them to give technical support; developing an inside technical support team. This is type of growth normally takes a much longer time to develop and expand the business: However, for a business with little capital this could be their only option. It is a much slower process and really takes some time to develop your team and achieve maximum sales potential.
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Furthermore, this horizontal acquisition proved to be very profitable and since Davis gained control they were able to use their existing knowledge to reduce and create a more profitable company. Moreover, since each provided the same type of service Davis was able to reduce operating costs by achieving economies of scale sharing expenses such as fixed…show more content…
If sales have always been good in most market but are lacking in the new market trying to figure out the problem might be a major hindrance. After all it could be as simple as a slogan that has been mistranslated that is keeping potential customers at bay.

It’s important to understand all these things before you begin your new business venture. After you have invested in everything and then if you realize that you need to do all this, it might be too late. Moreover, another suggestion is for the Brunt Hotel from our previous case study, to acquire this business as a vertical integration and as they expand the hotel chains to expand this chain to supply the sheets for the hotel, so it seems as though France would be a great choice. Brunt was acquiring a good many hotels in that country so it seems to be a good fit. However, the language might be a
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