Sunlight Case Study

1351 Words6 Pages
In this essay, we will analyze and speak about a company that searches to expand and grows in foreign markets. The company name is Davis Service Group and consist of the original company and the one that initiates this group - called Sunlight, and another two companies which were added in the second moment, the Elliott and HSS company. All companies were well known and market leader in the United Kingdom. But this wasn't enough anymore for the group as the United Kingdom market "had become a mature market where the prospects of future growth are diminishing" (Davis Service Group, 2008, p.1). For this reason, the company needs to prepare a plan and find strategies on how to best grow overseas. But, how can a company grow and develop…show more content…
And in the case study provided we have the solution to this questions. Now, the two major ways in which a company can grow and develop are through: 1) organic growth, 2) inorganic growth. On one side we have "the organic growth which is done by increasing turnover of existing business and on the other side we have the inorganic growth that is done by the acquisition of another business" (Davis Service Group, 2008, p.2). In other words, the organic growth is done internally by increasing the production, customers, sales, and profits, instead, the inorganic growth is done with the help of other companies, by making a joint venture with other companies. Example of organic growth in our case is represented by the Sunlight and Berendsen company, two of the group companies which were able to learn one from the other and increase their customers in the places each of them already perform. By joining their forces, by sharing their resources and ideas and by taking advantages of the structures and customers each of them already has, a plan was put in place and the group…show more content…
As we know, the European Union area is in continuous development, the living standards is growing too and many countries in the community are experiencing a high growth in "key sectors such as manufacturing so more uniforms are needed and the new EU legislation provides many opportunities "( Davis, 2008, p. 4). Opportunities that the Davis Service Group will not miss, like the necessity of using the protective uniform for workers, especially for the industrial one, which means many contracts for the group, many sales, and good profits. The company can sell more and increase the turnover without the necessity of acquiring a competitor. The legislation, the currency exchange, culture and free trade is something very beneficial for the company. Doing trade in European Union is similar to doing business in your home country, with some challenges more but with a lot more opportunities. The inorganic growth in EU was little more difficult and offer fewer opportunities, as many Eastern European countries have in the past many government-owned businesses that were privatized but still performing with poor equipment. This “old” businesses don’t adapt easily to the new legislation and they still perform under conditions which don’t give them any profit, worse, this companies usually make a bad end and go bankrupt, not definitely good targets to be

More about Sunlight Case Study

Open Document