The fact that European Union has managed to create and nurture Davis Service Group as a brand has improved the 3 Growing a Company by International Acquisition overall state of any merging company for it. Having Davis Service Group as a partner in a merger means that sales will be high due to the broad customer base provided by the EU. In addition to increasing sales, the horizontal integration will help the other company grow in the industry, acquire supplementary skills required, and enhance economies of scale (Hitesh, 2015). It may also lead to creation of a monopoly certified by the government, and the horizontally integrated firms will be the biggest firm known in the industry. Organic growth Organic growth is business growth from within that involves expanding the customer base and increasing profitability for maximum profitability of the business.
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
Organic growth simply means that a company increases the turnover of its existing business by having more customers to patronize its products. For a company with an organic growth, it means the company has to increase sales to its existing customers, improve the product’s quality and encourage new customers to use its products and services (Hatton, 2016). So, organic growth expands a business profitability from the inside while inorganic growth expands the business profitability from the outside (Hatton, 2016; The Times 100,
The two major ways in which a company can grow Successful companies continue to seek better profitability for their investors. There are two major ways in which a company can grow – Organic and Inorganic. Organic growth – this is when a company increase its revenue by simply improving its internal capabilities. As marketing and operations become efficient, the company will generate more revenue and ensures growth. By positioning a business as market leader, turnover can increase rapidly and Davis Service Group made use of Organic growth.
External expansion strategies are now hitherto an integral part of the globalization and internationalization movement by enterprises. Foreign markets are now contributing to significant growth paths of businesses in terms of their bottom line. Innovation and best practices are now easier to capitalize or access through simply acquiring foreign operations of relevant companies to their business. There are two ways in which a company can growth namely organic and inorganic. Organic growth is a strategy where an enterprise develops by making use of its current business base and leverage.
Also, the internal structure of Alibaba viz its division in 1688.com, Taobao.com, Tmall.com,Aliexpress.com etc help in efficient operations, as well as cost reduction since this, helps them to serve specific segments of customers. Alibaba – Going Global In order for its sustained growth, Alibaba is increasing its reach of operations. It is expanding into Asia Pacific region, Americas, and Europe. The customers of these regions have different demands. Hence Alibaba has taken following steps to help its global growth: a.
This is because the market produces high return, so that will attract new businesses and lead to many new entrant. Next is bargaining power of suppliers. There are suppliers of raw materials, parts, labour, and services to the company can be a source of power over
Case study: Growing a Company by International Acquisition As a successful corporation, the Davis Service Group has reached its market maturity in the U.K., in order to grow, it has to consider to expand outside of the U.K. To achieve the company’s goals, it needs to evaluate its options and develop its expansion strategies, in addition, to analyze its potential markets, especially in the EU areas. Thus, this essay will discuss four questions that related to these topics that may provide some insights to the viewers. The four questions include 1) Explain the ways that a company may expand its business, 2) Discuss the reasons why the acquisition of Berendsen is a good opportunity to the company’s success, 3) Analyze the factors that may encourage
Additionally, the skills of migrants can be complementary to the local workers and all workers experience increased efficiency which can be expected to lead to a growth in the income of existing workers. Moreover, increasing number of immigrants cause the increase of demands for goods and services which expand workplaces withing the supply