In this week’s Written Assignment, I will analyze four questions in regards to the Davis service Group. The company wants to expand by International Acquisition in order to gain competitive advantage. Therefore, it needs to adapt and make changes in order to be successful by cutting back less profitable branches and investing in more profitable areas.
Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
Inorganic Growth: Inorganic growth implements growth targets through the acquisition, merge of other companies or joint ventures. In many cases, the integration of the new parts of the company is problematic. Not only different technical equipment up to administration software can be an obstacle but in particular different cultures and the lacking readiness for the integration. Inorganic growth is also often used by companies that want to grow faster. Advantages include expanding the market, assets, income and a stronger creditworthiness. Disadvantages are, hiring more managers and employees which generates an additional cost to monitor them such as security, an uncertainty of the growth direction, growing too fast, expected investment …show more content…
The choice of a producer is a key decision for the success. Whether the production is to be made in Europe or elsewhere depends on the individual product, for example, whether it is luxury in small quantities, where the cost of the calculation is less important (for these products I would recommend countries like Italy, Germany, Swiss or France known for high-quality products), or mass-produced (here I would recommend countries such as China, India, Pakistan …. etc.) where a high price competition exists. In addition to the necessary competence, it is all about trust, as always. Those who already have a bad gut feeling probably risk too much. Besides the price, quality control and good working conditions should be top
Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
Inorganic Growth: Inorganic growth implements growth targets through the acquisition, merge of other companies or joint ventures. In many cases, the integration of the new parts of the company is problematic. Not only different technical equipment up to administration software can be an obstacle but in particular different cultures and the lacking readiness for the integration. Inorganic growth is also often used by companies that want to grow faster. Advantages include expanding the market, assets, income and a stronger creditworthiness. Disadvantages are, hiring more managers and employees which generates an additional cost to monitor them such as security, an uncertainty of the growth direction, growing too fast, expected investment …show more content…
The choice of a producer is a key decision for the success. Whether the production is to be made in Europe or elsewhere depends on the individual product, for example, whether it is luxury in small quantities, where the cost of the calculation is less important (for these products I would recommend countries like Italy, Germany, Swiss or France known for high-quality products), or mass-produced (here I would recommend countries such as China, India, Pakistan …. etc.) where a high price competition exists. In addition to the necessary competence, it is all about trust, as always. Those who already have a bad gut feeling probably risk too much. Besides the price, quality control and good working conditions should be top