1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
A company can grow through organic growth and in organic growth. Organic growth refers to growth through the increasing turnover of existing business. It is also growth due to increased sales and new customers for an existing business. From the example of the Davis Service Group, they utilised organic growth through with sunlight through the migration of best practices from each other as market leaders. Inorganic growth refers to the acquisition of another business or the joining of one or more businesses together. This can be done through mergers, take over’s, horizontal and vertical integration and acquisition. …show more content…
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?
The European Union is a group of 27 countries joined together by a treaty which allows free movement of goods, people and services in a single area. The aspects of European Union that have encouraged horizontal growth of the Davis Service Group are that both companies operated in the same business sector. Horizontal integration is the joining of two companies which are at the same stage of production. This type of integration provides a bigger customer base and enables economies of scale. The European Union provides vast opportunities for a business based in the United Kingdom, with 27 member countries they have a potential to attract millions of customers in an environment where there is easy flow of goods, fast transport links, high speed trains and cheaper air …show more content…
Both companies were part of the European Union group which is a rapidly growing and developing market due to the improvement in Trade and Living standard within member states. This has resulted in large global companies opening up new sites and requires services from the two companies. The European Union has a legislation that provides opportunities such as the provision of protective clothing for industrial workers, and thereby creating new business for the Davis Service Group.
4. If the company were to expand into new areas of the globe, where would you recommend and why? What factors might encourage or discourage this choice?
There are other aspects that discourage expansion into new areas and an example is that in some of the European Union countries there are certain countries that were part of the former Soviet Union which are unsuitable for takeover due the fact that they were previously government owned, had poor equipment and they had no need to rent out textiles. I recommend that they concentrate on the European Markets and only consider those markets with potential for growth as well as a good political and economic environment and were they are able to access an experienced work