This should not be considered a standard as this growth strategy can be operated by a company of any size. For this to be sucessful there most be a plan. If the business is expanding internationally there should be consideration of the following points.
The time to expand and how to expand should be considered. The expansion may take the form of take over, merger or starting up a new company.
Although expansion can be seen as a means …show more content…
This enable expertise from both firms to be used to reform Berendsen for effective production and profit.
More to that cultural differeces, langauge barrier, differences in currency which could have acted as an obstacle were redressed.
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?
The European Union is a vast market of about 500 million customers in 27 countries. Members do business freely. With the good infrastructure network like the chanel train, high speed train ad cheaper air lines movement of goods and people is rendered fast. The availability of skilled labor and the use of a single currency the Euro facilitate trade.
The Horizontal growth of Devis Services Group is as a result of the above opportunities. Also outfit like Berendsen acquired by Devis Service group were operating at the same level of production which was already a favorable condition for organic growth.
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