According to Growing a company by international acquisition (n.d.) there are two major ways of growing a business: organic or inorganic. The decision which one is the best solution for a given company depends on the market, trends and the resources of the company. In most cases organic growth is constant and an ongoing process while the inorganic growth happens when the company decides to widen its options. Organic growth happens when a company is using its own resources, opportunities and advantages to improve profitability. Usually this happens by one or more combined: - Expanding sales (inbound, outbound) activities to reach more customers - New product launch to increase market share - Marketing activities
It changed the figure of Africa, it introduced new diseases, poverty etc. Globalization created the environment of social hierarchy and inequality but along with this globalization affected a constructive way and force for development. World economy is worldwide issue that unites economy policies of a country and develops a country. Globalization in Africa represents the economic activity of Africa and built undermines states, cities and town. Globalization in Africa focused on economic bearing, international equality and harmony.
International Expansion: Davis Case Study The natural course of life for business is to grow. A company wants to grow to increase profits, to increase customer base, to increase its value, to innovate, to enter new markets, to build new product base, etc. The key is to develop, plan and execute a strong growth strategy. The strategy should outline what business or market to expand to, when to expand and how to expand. There are two ways in which a company can expand: Organically and inorganically (Growing a company by international acquisition, 2008).
1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. The study text clearly outlined two major ways of growth, viz: The organic growth and the inorganic growth. a. Organic Growth: is an expansion strategy whereby demand for existing business is increased through strategies that create an increase in the market demand for the existing product or a new market in the same or different geographical region.
To increasing potential sales existing customer zealong has to improve their quality, product variety, packaging style, supply chain etc. by doing this zealong can increase their sales in existing market. Because, it’s a human nature that after sometime everyone want something new. 2. “Existing product for new
In trade, the major objective of the African Union is to “accelerate the political and socio-economic integration of the continent. “About twenty years ago, African governments had recommended that African Economic Community would be in place by 2000 in order to ensure the economic, social and cultural integration of the continent”. (Mshomba, 2009) pg.
The European settler push into Africa was persuaded by three principle variables, monetary, political, and social. It grew in the nineteenth century taking after the breakdown of the benefit of the slave exchange, its abrogation and concealment, and additionally the development of the European entrepreneur Industrial Revolution. The objectives of entrepreneur industrialization—including the interest for guaranteed wellsprings of crude materials, the quest for ensured markets and productive venture outlets—prodded the European scramble and the parcel and possible victory of Africa. In this manner the essential inspiration for European interruption was financial. By 1900 a lot of Africa had been colonized by seven
Product Development. McDonald’s uses product development as a supporting strategy for growth. In applying this growth strategy, McDonald’s develops new products over time, such as new McCafé products. These new products may be variations of existing products, or entirely new products. The strategic objective for this strategy is to capture more consumers by attracting them to new products.
This project seeks to study how expatriates who are already on ground in Africa doing business overcame culture shocks and how future expatriate workers coming to do business in Africa can more easily overcome these cultural differences. The project intends to use Accra Ghana as a case study. Because of globalizations workers are rapidly moving from one continent to another. A lot of business opportunities in these countries motivate companies to expand into these regions particularly Africa. According to Deloitte (2013) Africa’s development shows characteristics that represent ample opportunity for the future and six major trends have been reshaping African economies and turning them into promising investment opportunities for the world’s largest consumer business companies.
This may involve promotion of the product, creation of an extensive distribution process to reach a wider consumer area, and putting attractive pricing to lure more customers into purchasing the company’s products. Coming up with innovative ways of increasing the usage of the product will also, help a company improve its sales in an established market (Maria, Grandinetti, & Bernardo, 2012, p.