Growing A Business Case Study

Successful business, as it is mentioned in the case study (Growing a Business byInternational Acquisition), Know when and how to adapt and change which involves growing some areas and cutting back less profitable areas. Companies may often grow by benefiting from acquiring businesses or outsourcing operations in overseas markets because of the availability of customers and low wages of the production cost.

Business growth or expansion has potential benefit and drawbacks, thus some business owners are unwilling and hesitant to run the risks and face the challenges of growing their businesses so they choose to leave them at the level of sole proprietorship. However, Growing businesses have two main advantages over its smaller competitors:

• They

Example, Facebook acquired WhatsApp at a whopping 22$billion.

2. 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. An acquisition can provide countless new opportunities. The new, bigger company may have more chances for advancement. Therefore sometimes the post-acquisition environment has bigger market opportunities, more chance for your product to meet the needs of new people. And often, there is a cash infusion that makes far more rapid growth possible and offer superior benefits.

In fact, for Davis Service Group which is located in UK enjoy many opportunities of acquiring Berendsen, a company operating in Denmark, Sweden, Norway, Austria, the Netherlands, Poland and Germany. Berendsen was an ideal acquisition because, like Sunlight, it was the market leader in providing textile services in its geographical area. In fact Davis Services Group can become more influent in the market price as price setter and can also easily reach the economies of

And also all the members of the European Union markets have a common commercial language which is English. And as Davis Services Group is from UK which use pound as currency, whereas Berensen coming from the European Union which using Euro thus this may pose a problem of currency valuation. Goods and services can flow freely in the single European market. This means it is much easier to do business in the EU. Trade within this area has risen by 30% since 1992. The development of fast transport links, for example, the Channel Tunnel, high-speed trains and cheaper air links, means people can travel to and across Europe more easily. The Internet and email enable companies to communicate instantly. British firms locating factories and offices in the EU are able to benefit from a skilled labour force. The EU currently has 27 member countries. It is a huge potential market. Any business in the European Union has over 500 million customers on its