Organizational Growth And Two Types Of Organic Growth

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(1) Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. The way I understand and according to the material provided this week, we can see two major ways in which a company can grow: the first one is called Organic Growth, and the second one Inorganic Growth (The Times 100, n.d.). Additionally, we can differentiate two types of integration, horizontal or vertical. Horizontal integration is considered for companies operating in the same sector and that are at the same stage of production, allowing them to increase their customer base and to share costs for more profitability. Vertical integration (forward or backward) though means for a firm to acquire the companies that it supplies and/or that buy its goods/Services in order to have a better control over the entire production processes. 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
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