Growth And Organizational Growth: A Example Of Organic Growth

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

The two major ways in which a company can grow are:-

• Organic growth

• Inorganic growth

Organic growth: In business, Organic Growth can be referred to expanding the business of a company via utilizing its owns assets and resources. Organic growth for an existing business is consist of enhancing new customers and new sales in order to increase profit.

Example: a great example of organic growth is Apple Inc. trend-setting product innovation such as iMac or iPod is reasons of apple growth which caused in their increment of market share and annual turnover.

Inorganic growth: can be referred to a situation in which two companies join either by takeover or agreement where one of these firms will purchase at least 51% of the shares of another company. By this act, the company in which has the greater share is in control of the business and is capable of deciding about the activities of firms.

Example: a great example of inorganic growth is Microsoft, because, since 1986, they successfully completed about 100 mergers.

Inorganic growth the growth of company happens in itself and will have development in existing affairs, however, inorganic growth includes expansion of a business into another country from outside.

Under inorganic growth, integration happens in two ways;

• Horizontal integration: can be referred to a situation in which both companies will operate in