Case Study : Davis Growing A Company

961 WordsMay 25, 20174 Pages
Case study: Davis Growing a Company by International Acquisition For this assignment, we are to read the Case Study of Growing a Company by International Acquisition, and describe how the business expands, grow, merge, and takeover. The Davis Service Group provides textile service in the UK and Europe. The Group operated in the UK conglomerated with three other companies such as Sunlight (textile maintenance), Elliot (building systems), and HSS (tool hire). Since the group was domestic, it had fewer opportunities for growth. The Group had to expand to Europe and grow. The European Union has over 500 million customers, it has high-speed trains, trades between countries are easier, and the internet enables the companies to communicate…show more content…
One example of an inorganic growth company would be Google.com. Google.com has taken over many companies such as YouTube, Drive, Blogger, Earth, Hangouts, etc. And, an example of an organic growth company would be Coca-Cola. The company is a household name in almost every country in the world. They have advertised heavily in order to build strong customer relationship and they have diversified their product offerings. Some Coca-Cola products are not advertised with the name of the company, but with different brand names such as Vitaminwater, Dasani, or Minute Maid. Businesses grow when they have the resources to expand and opportunities exist for growth. Explain how the acquisition of Berendsen provided such a good opportunity for the Davis Service Group. The acquisition of Berendsen provided a great opportunity for the Davis Service Group because Berendsen was a market leader providing textile services in seven European countries. For Davis Service Group, setting up a new company in Europe would have caused rivalry with Derendsen. Instead, The Group would build on Berendsen’s local experience and local market contacts. Moreover, the Group had expertise in textile service and an annual turnover of £820 million which is a great resource to expand into other geographical areas. The Group also oversaw the cultural differences, language barriers, and currency exchanges. In this case, all these difficulties would be

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