Two Major Ways In Which A Company Can Grow Essay

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. Some companies capitalize on various macro-economic indicators in different countries to expand their existing products or services. Also, favorable treaties, legislation or agreements between or among nations can also give existing companies opportunity to expand into other countries agreeing to the treaties. For instance, in the west Africa, the Economic Community of West African States (ECOWAS), consisting of certain members of the west Africa countries, signed a trade liberty agreement, which significantly pave way for free movements of goods and services between and among the member countries. Many companies, therefore, take advantage to seek an oversea presence in these countries. For instance, Globacom, third largest Telecommunication Company in Nigeria, expand to some of these countries and saw a magnificent expansion in its business. Anther practical example is the Eco Transnational Incorporation (ETI), an Africa Financial service company

Inorganic growth: is a growth strategy adopted through acquisition or combination of two or more companies. These companies may be in the same stage of production with the acquiring company (Horizontal integration) or in a different stage of production but related industry (vertical integration) or in a totally different product line and industry (diversification). Organic growth method is will be somewhat aggressive strategy adopted to expand rapidly/geometrically rather than laterally/arithmetically. This strategy, according to the text, may come in the form