Examples Of Organic Growth
1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
There are two ways of growing a company that is organic and in organic. Organic growth is when expanding the business by natural way such as making profit and opening branches and hiring more staff. On the other hand when a business is growing inorganically, is when a company buys majority shares of another similar company or purchasing the entire company and operates as its own.
Example of an organic growth of a company would be MacDonald fast food chain. This company started from the scratch and expands its business within the region and expands overseas. They increase their revenue and invested on purchasing properties and increase their product. A good example of inorganic company growing is when Nokia and Microsoft merge together for better customer base and new channels of distribution that resulted in increased growth.
The advantages and disadvantages of organic and inorganic growth
One of the advantages of organic growth is having strong managements that implements effective planning on expansion of the company. The managements know well how the business operates in the marketplace. However, in organic growth, there is always limited resource since the business runs in the same marketplace.
In inorganic growth, you will be able to acquire more assets and tackle new market place right away. At the same time, it could be overwhelming to handle more employees.
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