Davis Service Group Case
This essay focuses on the growth of a company. It will examine the case study of “Davis Service Group” which acquired Berendsen a business in the same textile maintenance services as them (Davis Case Study, n.d.).
For any level of growth to occur businesses and their staff must be willing to embrace change. In the case of international expansion, the market must first ensure that its home base operations are strong enough and that the industry has achieved a level of maturity, only, then should the company consider expanding and acquiring business operating outside their borders.
There are two significant ways by which a company can grow organic growth and inorganic growth. Organic growth (internal growth) entails increasing profitability
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It is a perfect way of expanding into other 27 European Union member countries, specifically, access to a potential population of about five hundred million clienteles. There are no export or import barriers on EU goods and services considering that there is a single European market hence the prospect of horizontal growth for the Davis Service Group is perfect (Davis Case Study, n.d.). In fact, the acquisition can be deemed as a strategic fit. There was a minimal barrier as they both operated within the EU business space hence the purchase was smooth and perfect. There was no language barrier since Berendsen 's companies functions through some European countries where English is used as a standard business language. Regarding cultural differences, the two companies (Sunlight and Berendsen) has the same procurement patterns. The EU currency is linked to each other in the countries in which Berensden currently functions (Davis Case Study, …show more content…
Inorganic growth, a company builds its business through a flexible management system. The firm engages in detail marketing, sales and planning that process involves, attaining new customers, and increasing sales. The composition of the European Union with 27 countries and five hundred million possible targeted customers which could boost sales and convert products into a profitability market. Conversely, inorganic growth is as a consequence of two businesses coming together through merger or acquisition. The possibility financial growth is the acquisition of the clients of the other company (Davis Case Study,
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