Growing a Company by International Acquisition - 881 Words

For growth, businesses should know when and how to introduce change, usually by acquiring business operating over and beyond the borders. That is, at that point where they reach maturity, meaning that they have tackled all the possibilities of growth and there exists no more opportunities where they are currently based. The two major ways in which a company can grow are:- †¢ Organic growth †¢ Inorganic growth Organic growth comprises of increasing new sales and new customers for the existing business to improve in terms of profit. The company grows within itself and improves its existing affairs, as opposed to inorganic growth which involves expanding the business from outside into other regions or countries. In organic growth, a company†¦show more content†¦Its position in the market made integration easy in terms of established networks and customer relationships. By taking over Brendsen Davis Service Group was able to exercise its authority fully by reducing the overall cost of running the business, for example, closing down shops in areas where Brendsen had more than two outlets in the same region, strengthening the management of the two companies, taking care of the fixed costs (the costs that remain unchanged over time), for example, repaying the debts hence cutting out on the interest rates, permanent salary of the closed firms, bills on electricity rent etcetera. Aspects of the European Union markets that have particularly encouraged horizontal growth of the Davis Service Group includes the fact that the EU has 27 countries under its name, that means, a ready market of over 500million customers who are ready to consume the goods and services proposed to them. That coupled with free flow of goods and services, a fact that has been supported by the infrastructure, the development of the fast trains, low cost airlines etc, as this means that people, goods and services can travel across Europe more easily and faster. The development of internet has also ensured the fast and effective means of communication, top that up with the skilled labour force. In Europe, education standards are very high, the manner in which students areShow MoreRelatedCase Study : Growing A Company By International Acquisition810 Words   |  4 PagesWritten Assignment Unit 7 Case study: Growing a Company by International Acquisition Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. When a company is starting or expanding internationally it can develop by inorganic growth or organic growth. An inorganic growth refers to the growth of the company by merging with other companies or by the takeover. This type of growth provides with an existing customer base, channels of distributionRead MoreZachary Hood Case Analysis PepsiCo. 1. PepsiCo. is the world’s largest snack and beverage company1200 Words   |  5 PagesZachary Hood Case Analysis PepsiCo. 1. PepsiCo. is the world’s largest snack and beverage company in the world as of 2013. However, when this case was wrote PepsiCo. was not the world leader in the snack and beverage company, it was second. PepsiCo. corporate strategy has diversified itself into many different categories, such as sweet and salty snacks, soft drinks, orange juice, bottled water, tea and coffee. They proceed with caution with which industries to enter or not to enter. If theyRead MoreStarbucks and Caribou Coffee: A Comparative Analysis1664 Words   |  7 PagesIntroduction The two companies that are the subject of this report are Starbucks and Caribou Coffee. Starbucks operated internationally from an early point in its history, opening its 10th store in Vancouver its second market was international, before anybody in the US outside Seattle had heard of Starbucks. Now the company operates around the world. While its coffee business has not generally been built on the basis of acquisitions, i t has attempted to complement that business and enter new onesRead MoreMergers And Acquisitions Essay1088 Words   |  5 PagesMergers and Acquisitions Acquisitions are the absorption of a smaller firm by a larger firm, while a merger is the combination of two firms to form a single entity. In a merger, there is often an exchange of stock between the companies where one company issues shares to the shareholders of the other company at a certain ratio. The firm whose shares continue to exist is generally referred to as the acquiring firm while the other is the target firm. Except for synergies, the post-merger value ofRead MoreThe Core Business Of The Davies Service Group1197 Words   |  5 Pagesin the UK and in Europe; the company provides dry-cleaning, laundry services and work gear specific to different industries and service sectors. The company supplies and services flat linen for the hotel and restaurant industry, provides linen and management systems for hospitals and decontamination services for surgical instruments. The company offers dampness and dirt removal from workplaces, hotels and restaurants, washroom services and industrial mats. The company also sells linens and work gearRead MoreAmazon : A New Opportunity Essay1345 Words   |  6 Pagesfor a new opportunity, that’s why it just keeps on growing and growing and growing. Amazon believes that the company would be overtaken by competitors in different fields, if it doesn’t sustain the constant investment in its business avenues. Over the past three years, Amazon has simply participated in two acquisitions, however it has a record the only cpmany with the largest amount of acquisition in the 21st century. The most recent acquisition has been with the company’s Twitch for $970 millionRead MoreReport On Suitable Acquisitions For Rinnovar International Inc.1072 Words   |  5 Pages TITLE PAGE Report on suitable Acquisitions for Rinnovar International Inc. Prepared for: The Chief Executive, Rinnovar International Inc. By: Corporate strategy Department, Rinnovar International Inc. Dated: 07/02/2015 Commercial in Confidence TABLE OF CONTENTS 1. Executive summary†¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...2 2. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦2 3. Findings†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 4. Conclusions....................................................Read MoreThe Benefits Of Inorganic Growth And Global Growth811 Words   |  4 Pages1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. Two major ways in which a company can grow are organic and inorganic growth. Inorganic Growth involves growing thru mergers and acquisitions. This can be done internationally or domestically, but nonetheless, it involves the growth generated by buying a new company, a new branch, or a new brand (Johnston, 2017). As an example, if McDonalds acquired a competitor, such as Burger King, it willRead MoreThe Davis Service Group And Its Takeover Of Berendsen1142 Words   |  5 Pagesways a company can grow, what a company would consider if they were expanding globally. We will look at which aspects of the European Union encouraged the horizontal growth of the business as well as the differences between Organic and Inorganic growth. Lastly we will theorize why the acquisition of Berendsen was a good opportunity for the Davis Service Group. Describe two major ways in which a company can grow and include 2 examples. According to this week’s case study material a company can growRead MoreWumart Swat Analysis1077 Words   |  5 Pagesrequires solid strategic planning. To achieve the high profile status in market, the company remained constantly developing in innovation on themes to deliver the distinctive benefits. Wumart has been growing from the very beginning with the average growing of 40% a year. The company realized that in order to make value in a long term, the company should grow and develop constantly. The ambition of the company is to be the leader of the industry for which WuMart has designed the growth strategy