The Benefits Of Organic Growth

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

Companies employ two major strategies to obtain growth and maintain it to create competitive advantage. Organic Growth is a strategy where the company focuses on growing its customer base, reinvesting profits in newer assets to achieve greater income, and driving productivity to increase their bottom line. In other words, Organic

Growth refers to a company's internal growth by increasing the turnover of the existing business without being involved in mergers or acquisitions (Growing a company by international acquisition, n.d.). The other major strategy is Inorganic Growth, which relies on mergers and acquisitions to expand the customer base and exploit new

What aspects of European Union markets have particularly encouraged:

• horizontal growth of the Davis Service Group?

• organic as opposed to inorganic growth?

According to the case study, horizontal integration is when two companies at the same production stage join forces (Growing a company by international acquisition, n.d.). This was the case when the Davis Service Group's Sunlight and Berendsen shared the same specialties and were on the same stage of production at the time of the takeover, which facilitated Sunlight's pooling of Berendsen's knowledge and expertise (Growing a company by international acquisition, n.d.). In addition to the language, cultural, and currency benefits mentioned above, the Davis Service Group was able to finance the acquisition smoothly due to the similar strategic approach both companies employed

(Growing a company by international acquisition, n.d.). Therefore, the Davis Service

Group followed an Organic Growth strategy to exploit the EU market once it had acquired Berendsen. The Davis Service Group took advantage of the fast-growing trade and living standards in the EU to increase their customer base in Berendsen's