University of People
BUS 2207
Professor Frank Billingsley
August 01st, 2017.
Case study: Growing a Company by International Acquisition.
The aim of this essay is to describe a Case Study - Growing a Company by International Acquisition and to answer all questions form the written assignment task. To further entail other requirements, this paper is aimed to at least 4 page length, font size 12, double spaced, Bookman Old Style font, and lastly include a source list.
1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
For all businesses that are going to develop and grow it is critically important to know when …show more content…
The company grows within itself and improves its existing processes and products to get new customers from their competitors. Oppositely, an inorganic growth involves expanding the business from outside into other regions or countries, other words through an acquisition process. In organic growth, a company can be through a merger where two firms join by agreement or via takeover where one company buys at least 51% of the shares of another company, meaning that the company with the majority of the shares gets the full control of the business and chooses which activities to keep and which have to be sold to optimize their expenses and focus on the areas where the company is the …show more content…
Their leading positions made integration easy in terms of established networks and customer relationships. After the acquisition of Brendsen Davis Service Group reduced the overall cost of running the business – they strengthened the management of the two companies, closing down shops in cities where Brendsen had more than two shops to reduce the fixed costs (the costs that remain unchanged over time), for such as, permanent salary of the closed firms, bills on electricity rent, repaying the debts hence cutting out on the interest rates, and so