The Group

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Recommended: distinguish between organic and inorganic growth.

There are two major ways in which a company can grow namely inorganic growth and organic growth. Inorganic growth occurs when two or more companies are combined. This may include merging two companies enters a mutual agreement to join their services or businesses. In this way the companies share their resources and help them to focus on the profitable business activities for each of them. Inorganic growth may also involve one company taking over the other company by purchasing more than half of all the shares making it a sole control and a decision maker over the business activities by the virtue of it being a major shareholder. Merging will result into business integration that may be horizontal that refers to a situation in which the two firms that marge are at the same production stage aiming at maximizing customer base and economies of scale. On the other hand, the integration may be vertical in which the companies that merge are at different stages of production focusing on maximizing control of supply chain for services and products. Taking over of another company entails ac...

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