Analysis Of The Davis Service Group Case Study

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Analysis of the Davis Service Group Case Study The dynamic world of business presents opportunities and challenges to firms which can help or hurt them. When a business produces favorable results from its operations and has reached a pinnacle in their domestic market, a business may require expansion to new international markets. In the case of England’s Davis Service Group, such expansion limits in the mature markets had led the firm to explore international expansion options (The Times 100, 2008). Through the acquisition, Davis Service Group was able to expand their business into other parts of Europe successfully. Within this report, the case study of Davis Service Group will be analyzed to understand international business…show more content…
Product diversification can allow a single company to market other product lines to capture different markets. For example, Proctor and Gamble markets multiple name brands across five main segments including beauty; grooming; health care; fabric and home care; and baby, feminine, and family care (Proctor & Gamble, n.d.). Inorganic growth. Inorganic growth, or external growth, is when a business will expand by external means such as mergers or acquisitions (The Times 100, 2008). According to Johnson (n.d.), inorganic growth allows for immediate expansion of assets, income, and market presence of the expanding firm. Additionally, the firm can take advantage of the strengths of the other firm.
Mergers occur when multiple firms join through agreement into one organization to take advantage of each firm’s resources. Entrepreneur (n.d.) explains mergers occur either when “it makes sense to join forces with another company to reap the rewards…from combined strengths,” or when one of the firms’ owners simply wants to sell the business, and the other believes it’s a worthwhile investment (para. 1 & 4). Acquisitions, also called takeovers, occur when one firm purchase (invests) a controlling share of another firm (The Times 100, 2008). Acquisitions can either be positive when both firms are mutually in agreement or hostile when there is resistance or reluctance within one of the parties. Inorganic growth examples. There
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