Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. Expanding your company in to other countries is a good way to grow your company. For example expanding in to areas of the (EU) European Union which provides many different opportunities for a UK based business. There is a huge potential market in the EU. There are over 500 million potential customers in the UK. Goods and services are free flowing in the European market which makes it easier to so business in the EU. Due to the newly developed transportation channel tunnel and high speed trains, people are able to travel across the EU more easily. Through technology you can instantly communicate via the internet and email. Your company …show more content…
Explain how the acquisition of Berendsen provided such a good opportunity for the Davis Service Group. Berendsen was ideal being the market leader in providing the textile services in the geographical area. It was better to continue to build on Berendsen's local market and experience. The Davis Service Group has proven management systems in providing the textile services. By taking over Berendsen the Davis Service Group had control over all of the best systems. After the take over the operating costs were reduced due to removing one outlet that was operating in close proximity to one another. The Davis Service Group strengthened the management team. The central headquarters was removed which saved the fixed costs and improved the sales and profits. Another reason why the acquisition made sense was due to horizontal integration. Both specialist companies Sunlight and Berendsen were at the same stage of production and shared the knowledge and expertise so both benefited. The financial take over was a strategic fit that was straightforward and just made sense. The shareholders and banks easily understood, sell shares to existing