The company is able to deliver products according to retailer’s request improving its reputation as a “Good Shipper”. After acquisition, Newell transfers its technology to acquiring companies in order to deliver the products in the most efficient way. Acquiring companies learn new technologies from Newell and they both are able to develop the process. The company put through a process of streamline as known as “Newellization”. Growth through acquisition is extremely profitable to Newell’s corporate strategy.
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
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.
1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. There are two ways of growing a company that is organic and in organic. Organic growth is when expanding the business by natural way such as making profit and opening branches and hiring more staff.
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.
Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. Expanding your company in to other countries is a good way to grow your company. For example expanding in to areas of the (EU) European Union which provides many different opportunities for a UK based business. There is a huge potential market in the EU.
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.
Growth in the firm can be defined in many type of meanings. For example, it can be means that an increase in the sales of company and acquire or merge with other company to expand its business. The increases in the number of staffs in the firm also one of the meanings of growth in the firm. The growth of sales can be measure as the following formula by Current year sales minus previous year sales and divided by previous year sales. Change in demand of product or service of the company will influence the changes the sales of that company, and demand is the predictor of growth (Vijayakumar & Devi, 2011).
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.