Davis Growing A Company Case Study Essay

Case study: Davis Growing a Company by International Acquisition

For this assignment, we are to read the Case Study of Davis: Growing a Company by International Acquisition, and describe how the business expands, grow, merge, and takeover. The Davis Service Group provides textile service in the UK and Europe. The Group used to operate in the UK, conglomerated with three other companies such as Sunlight (textile maintenance), Elliot (building systems), and HSS (tool hire). Since the group was domestic, it had fewer opportunities for growth. The Group had to expand to Europe and grow. The European Union has over 500 million customers, it has high-speed trains, trades between countries are easier, and the internet enables the companies to communicate instantly. The Group employs 17,000 people and has annual revenue of more than £820 million. Textile and linen hire provided the most opportunities and the most revenues. The underperforming businesses were sold off in order to concentrate the funds in the textile sector.

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

An internationally expanding company can develop by inorganic growth or organic growth. An inorganic growth refers to the growth of the company by merge or takeover of other companies. This type of growth provides existing customer base, channels of distribution, and access to new markets. When companies merge, they share resources and knowledge. On the