Case study: Growing a Company by International Acquisition
Write a 4-page, double-spaced, essay covering the four questions above. Use your own words – do not copy and paste from any web site.
Introduction
Many companies hope to grasp the opportunity that can deal with buying, selling, dividing and combining of other firms in overseas that can help the company growing rapidly in its business sector. Grow in this essay means that the company focuses on its core business while they are doing restructuring less profitable business unit simultaneously. M&A (Merger and Acquisition) is a major way that the can do as a type of reorganization of growing company. Upon giving answers to the given questions, I would argue how …show more content…
Berendsen operated its business in Denmark, Sweden, Norway, Austria, the Netherlands, Poland and
Germany. Berendsen was not performed well than before but still they have the great experience and also have existing customers. They have a still great network. The
Davis Service Group wanted to use existing systems, so The Davis Service Group decided to take over one existing company upon seeing great opportunities; reducing operating costs by closing duplicate outlets in the same area, strengthening the managements, and saving fixed costs. The management of The Davis Group saw taking over would make Berendsen raise its profit.
#3. What aspects of European Union markets have particularly encouraged horizontal growth of the Davis Service Group? What aspects of European Union markets have particularly encouraged organic as opposed to inorganic growth?
Two were the market leader in UK and in all over the Europe. Taking over and maintaining two entities, they thought, would encourage their growth in the European market. That's why they made horizontal integration. Under the European