How To Illustrate The Two Ways Of International Expansion And Inorganic Growth

The people of those countries will be mad if that company moves out. Since companies have gone global, their officers are also from different parts of the world. Their headquarters are in one place and factories in another. It starts to get hard to tell where the company belongs.

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.

According to The Economist vertical integration “is the merging together of two businesses that are at different stages of production” (The Economist pg. 1). An example, of vertical integration provided in the book Real Titans was Carnegie in steel and Libbey in glass. (Skrabec pg. 54). This example illustrates how two companies which provided different products are able to successfully merge together. On the other hand The Economist defines horizontal integration as “the merging together of businesses that are at the same stage of production…” (pg. 1). For example, AT&T had recently acquired both T-Mobile and BellSouth which illustrates horizontal integration as they are all telecommunication companies. Generally, when a company is trying

When a company grows it achieves economies of scale, it increases its market shares and thus wipes out competition. A company starts making more profits and can use these in constructive ways such as employing specialist workers and improving the variety and quality of products, by delving more into research and development. These are only some of the

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

can grow. A company can develop by organic growth or inorganic growth (The Times 100,

The two ways in which a company can grow is Inorganic Growth and Organic Growth

Voluntary combination of the two firms in to a new legal Entity. Mergers are effected by exchange of the pre-merger stock or shares for the stock of new company. Owners of each pre-merger company continue as owners, and resources of merging companies are pooled for the benefit of the new company. If the merger takes place between competitors, like in Mobilink and WARID, so it will be “Horizontal Integration”, and if the merger takes place among supplier and customer, so it is known as “Vertical Integration”.

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

Lateral mergers are where two firms that are at the same stage of production, but where the products do not directly compete.

There are various ways to grow a company. However, two major ways in which a company can grow is through inorganic and organic growth.

Horizontal Cross-Border Merger and Acquisition refers to M&A between companies who are providing the same products or services. It’s an M&A between competing companies in the same industry. Under horizontal M&A, the merging companies intend to achieve synergies and greater market power. According to the World Invest Report of 2000, in 1999 70 percent of the value of cross-border M&A are horizontal however, it has been decreased to 59 percent in 2009.

Multinational companies have largely followed Glocalization, which is a simple global strategy of innovating in home countries and exporting the product to other nations with minor modifications to meet the requirements of local markets. This was a fruitful strategy to monetize in the past especially if the export markets were other industrialized nations. However, trends have changed over the past few years. Big companies started to understand that it is essential to innovate and not just export in order to flourish in upcoming nations.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

International business is much more complex than operating within the domestic market because countries are extremely different in many ways. The