Case Study Of Davis: Growing A Company International Aquisition
Davis: Growing a Company International Aquisition
Going multinational is a very complex procedure for a company and it requires dexterity and research. The Davis Service Group, a conglomerate initially based in UK, has proved to be a successful multinational expansion. Back in UK, David Service Group comprised of three branches being Sunlight, a textile maintenance company whose prime focus was to rent sheets to hotels, hospitals, and other businesses, Elliott, a building system company which concentrated on leasing temporary office spaces, and HSS, a tool renting company. Sunlight, being the most efficient one in the company, was the opted one in terms of expansion on a multinational level, and it took place mostly in Europe. Sunlight acquired …show more content…
Thus by acquiring Berensten, Davis has an advantage in terms of overcoming multinational difficulties.
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?
Davis Service Group was drawn to the European Union Markets because of various reasons.
We all know that the European Union is a group of 27 countries using the same currency. By merging organically with Berendsen, this made the expansion smoother as it is easier to monitor one currency than several others and Berendsen was already acquainted to the Euro. Europe is known to have a very stable economy and politics; hence the transition was smooth and by taking over Berendsen, it magnified the benefit of the growth. One among the primary languages throughout the European Union is English which helped in the acquisition process.
Whatever language differences that would have cropped up, Berendsen would have already tackled those differences. Cultural Behaviors are very similar throughout Europe which helped during the expansion. By organically growing, Davis could handle the differences very …show more content…
Davis Service Group did not have to start from scratch and invest into new equipment and raw material. The customers of Berendsen were there and marketing expenses was avoided. All these factors posed as an advantage to Davis toward expanding in Europe horizontally and organically.
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?
If Davis Service Group were to expand in newer areas, I would definitely recommend the United
States of America. USA has always been referred as the land of opportunity. It is the place where businesses dream of making it big and sky is the limit. As a matter of fact, there are several companies similar to Davis’s Sunlight such as Rent It Today and Your Linen Service in
USA. Promoting a Horizontal and organic growth can help Davis to eliminate the trouble of having to invest greenfield and enjoy the benefit that such companies already have. On political ground, USA has one among the most stable political set up in the world. The constitution of
Going multinational is a very complex procedure for a company and it requires dexterity and research. The Davis Service Group, a conglomerate initially based in UK, has proved to be a successful multinational expansion. Back in UK, David Service Group comprised of three branches being Sunlight, a textile maintenance company whose prime focus was to rent sheets to hotels, hospitals, and other businesses, Elliott, a building system company which concentrated on leasing temporary office spaces, and HSS, a tool renting company. Sunlight, being the most efficient one in the company, was the opted one in terms of expansion on a multinational level, and it took place mostly in Europe. Sunlight acquired …show more content…
Thus by acquiring Berensten, Davis has an advantage in terms of overcoming multinational difficulties.
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?
Davis Service Group was drawn to the European Union Markets because of various reasons.
We all know that the European Union is a group of 27 countries using the same currency. By merging organically with Berendsen, this made the expansion smoother as it is easier to monitor one currency than several others and Berendsen was already acquainted to the Euro. Europe is known to have a very stable economy and politics; hence the transition was smooth and by taking over Berendsen, it magnified the benefit of the growth. One among the primary languages throughout the European Union is English which helped in the acquisition process.
Whatever language differences that would have cropped up, Berendsen would have already tackled those differences. Cultural Behaviors are very similar throughout Europe which helped during the expansion. By organically growing, Davis could handle the differences very …show more content…
Davis Service Group did not have to start from scratch and invest into new equipment and raw material. The customers of Berendsen were there and marketing expenses was avoided. All these factors posed as an advantage to Davis toward expanding in Europe horizontally and organically.
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?
If Davis Service Group were to expand in newer areas, I would definitely recommend the United
States of America. USA has always been referred as the land of opportunity. It is the place where businesses dream of making it big and sky is the limit. As a matter of fact, there are several companies similar to Davis’s Sunlight such as Rent It Today and Your Linen Service in
USA. Promoting a Horizontal and organic growth can help Davis to eliminate the trouble of having to invest greenfield and enjoy the benefit that such companies already have. On political ground, USA has one among the most stable political set up in the world. The constitution of