Case Study Of Growing A Company By International Acquisition

1. How has the company grown? What is its basic strategy + how has it evolved? What have been the key factors in the company's growth?

1.-Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

3. What aspects of European Union markets have particularly encouraged horizontal growth of the Davis Service Group? What aspects of European Union markets have particularly encouraged organic as opposed to inorganic

Describe two major ways in which a company can grow. Give examples to illustrate the

Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

When a company develops through organic growth it means it increases its turnover of the existing business, while on another hand, developing through inorganic growth refers to the acquisition of one or more businesses. The former literally involves increasing the amount of customers and increasing the sales with the existing businesses, ‘simply’ by improving repeatedly on the productivity, efficiency, based on good ideas, experience and best practice (The Times 100, n.d.). For the latter, we distinguish to distinct scenarios! In the first scenario, we talk about a common agreement letting both firms take advantages of their correct

Describe two major ways in which a company can grow. Give examples to illustrate the

Conducting any type of merger in any foreign market exposes the companies involved to a variety of differences in cultural and operational matters across different borders.  Through forming strategic alliances, FM collaborated & conducted operations with companies that share the same core values without educate themselves on the different cultural norms these companies face with their specific customer segments. A number of important competences were gained from these alliances that FM previously lacked - strengthening the company as a leader in Marketing and Sales, Logistics, R&D and ultimately customer satisfaction. Although these synergies would have still been present through an acquisition, an alliance was more favorable as they didn’t force the entities involved to change culturally or operationally, but allowed them to voluntarily improve their operational competencies and strengthen their competitive advantage. From a strategic perspective, this worked out very well, since customer preferences weren’t affected by these joint ventures, and demand for entity specific products continued to grow.

The two ways in which a company can grow are organic growth and inorganic growth.

They also pursue growth strategy to reduce cost of production per unit. Growth Strategies involve a significant increase in performance objectives. These strategies are adopted when firms remarkably broadens the scope of their customer groups, customer functions and alternative technologies either singly or in combination with each other. Reasons for adopting Growth Strategies: In the long run, growth is necessary for the very survival of the organizations themselves, particularly when the environment is quite volatile. Growth offers many economies because of large scale operations. Growth Strategy is taken up because of managerial motivation to do so. Managers with high degree of achievement and recognition always prefer to grow. There are certain intangible advantages of growth. These may be in the form of increased prestige of the organization, satisfaction to employees and social benefits. Example: Growing companies have high level of prestige in the corporate world, e.g., Reliance, Infosys, Hindustan Unilever, etc. Types of Growth / Expansion Strategies: (i)Concentric Expansion Strategy: The first route of growth is to expand the present line of business. It can be aimed at market penetration, market development and / or product development. Market Penetration: The organization tries to capture market share in the existing product and aims at expanding its business at a rate higher than the industry

As described in the introduction, inorganic growth is the strategic development which uses the competencies of an external organisation to achieve the progress. The external methods could be acquisitions, mergers, joint ventures, partnerships or alliances. (Thompson, Martin, 2005) Inorganic growth is often described as a faster way to grow compared with the organic growth. According to Chari (2004) external method helps to expand the company faster, access to new markets and the customers, decrease the competition and access to new technologies. However the author is arguing that the inorganic strategies as mergers, acquisitions have very high failure rates and therefore a company can lose a lot of money.

The group has organically and through a series of strategic acquisitions in its relatively short

As the BCG map shows, EU and Other market business have a fast growth rate, but market share is lower. They can use acquisition to solve this problem. Acquisition is the fastest form of growing a market share; it also can gain the resources or competence from the initial company, such as the equipment, market share and distributors. Growth through acquisition is quicker, cheaper, and far less risky. Furthermore, acquisition offers

|The European market is changing, of course, with the recent opening of the EuroDisney project.  |

After applying frameworks and theories, it can be stated that in terms of growth in a company, I have learnt that it can be applied and indicated differently in distinctive companies. To exemplify, growth can mean increase in staff employment in a company whereas it can also mean increase in production volume. However, it is clear that growth must be planned, organised, activated and controlled (Nieman and Pretorius, 2004). In other words, growth can be either sustaining its business in the industry or expanding its business.