There are two ways in which a company can expand: Organically and inorganically (Growing a company by international acquisition, 2008). We will describe the ways in which Davis Service Group successfully expanded, how the European Union helped in the process, and how it helped Davis to face the challenges of international expansion. Organic vs. 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 could see the profits increase. Another example of organic growth for any company is by promoting their products through marketing advertising which will increase their brand awareness and bring new sales.
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.
1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. The two major ways to grow a company is through inorganic growth which involves mergers and takeovers and organic which is increasing the turnover of the existing company. An example of inorganic growth was Bibby Line Group 's acquisition of Garic Ltd in 2008.
6. “New industry structure”: To achieving growth of company, company can acquiring or merge with other company and gain faster growth. Zealong also adapt to new industry structure to achieving faster growth. Zealong has to merge and join with those company who already have good reputed and well known in there counties. By doing this company can easily increase their sales and growth.
Organic growth is a strategy where an enterprise develops by making use of its current business base and leverage. Under this growth factor an organization leverages on its current markets and business strength to grow. An example is perhaps when a national brewer decides
The main advantage of internal growth for companies in general is that the company grows within the existing structure, so there will be no problems of structure or management systems. The other main type of business development, which Coca-Cola experienced after some time, is external development. The difference between external development and internal development is external development happens
There are basically two ways to grow a business organically and inorganically each has advantages and disadvantages. Organic Growth-When a business is being grown organically it means that it is growing from within; building and using existing resources, for example if the business needed a strong technical support team. To grow organically the business would need to hire people and train them to give technical support; developing an inside technical support team. This is type of growth normally takes a much longer time to develop and expand the business: However, for a business with little capital this could be their only option. It is a much slower process and really takes some time to develop your team and achieve maximum sales potential.
Globalization is the very first cause for which big companies have tremendous growth and profitability. Globalization is an open gate for companies to expand their business around the globe, before doing so the understanding of cultures for foreign countries is vital. A good example that our team include was India and they sacred animals such as cows. India has a different market and demand for those companies that are used to sell cow meat in the occidental part of the world, the food and beverages industry for this country is hard to compete, foreign companies which have to adapt to the government policies, culture and believes needs to overcome this factors to succeed. As multinational companies the key to stay ahead and consistent growth is to follow government policies, new innovative
In an article of Growth Strategy, it stated that one of the reason companies focusing on growth is a general sense of optimism about the future. There are many ways to achieve growth and successful organizations understand that they need to think about growth in a holistic way. Among the drivers of growth as stated in this article are: i. Developed and launched a new product or service ii. Invested in training and development programs to advance employees’ skills iii.