Companies are in business to render products and services to the populace with the aim of making profit to its shareholders. In this competitive business environment, businesses are constantly looking for ways of expanding beyond their immediate environment. Businesses or companies that are stable and doing well in business may seek to explore other areas that will expand their customer base and rake in profits for them. The two main ways by which these companies do this are: organic and inorganic growth.
Organic growth denotes when a company increases the turnover of his business. It involves seeking additional market opportunities to …show more content…
This will make people patronize his company and decrease the patronage of its competitors. An example of inorganic growth is when Airtel, a company from India bought larger percent of shares in Econet and thus take over the company.
How the acquisition of Berendsen provided such a good opportunity for the Davis Service Group.
Just like DAVIS Service Group, Berendsen is also a leader in its business; the company is doing well in 7 european countries which provides the perfect opportunity for Davis Service Group to grow across Europe. Berendsen also has access to large customer base, knows more about the local and spending pattern of the countries it is operating. This provides the opportunity for Davis Group to be easily accepted across it borders as the seven European companies already know Berendsen as a local and a trusted company.
Cultural barrier has always been a major concern for companies wanting to establish their presence oversees; Davis Group needs not worry over this as the spending pattern across Europe is similar to UK. The local culture is what Berendsen is familiar with and may not poss any major challenges for the …show more content…
The population provides a veritable market for Davis Group in the European Union while the skilled workforce wil provide the necessary manpower for the company. Ease of transportation is important in conducting business across different country and since there is free passage of goods and services across EU countries, the company cost of transportation will be minimal. The currency for bill payment is unified across Europe thus the need for currency exchange with it attending volatility is