ternal growth strategies:
strategies are adapted to increase the growth rates of anorganisation by simply investing their resources in another firm. It is a horizontal type of integrationwhere in a business enters into Memorandum of association (MOU) with the other same linebusiness organisation or firm in other words merging with the other organisation. This merger isoften with in the same line, same sized organisations. Merging is mutually desired and is results information of essential strategy options which sometimes turns into extraordinary changes in theoverall performance of the company. To penetrate into the new market merger strategy is followedby the company. Now in case of Macpac, it is clear that when the company has emerged in 1980¶sand increased its staff by 20 and sales of NZ $300000, at that time the owner of the company(Macpac) Bruce Mclntyre decided merger with a retailer Geoff Gabites. The retailer company of Gabites and his wife shally were dealing with the business of producing cloths, sleeping bags andtents with a limited no. of sales and few profits. The strategy adapted by the Macpac proved to beresult oriented for both the companies as both of them formed a marketing association andpartnership and work under the same banner Macpac, thus a strong brand was on the launch pad.This brand was the first of its kind in the country producing a variety of products. Hence businessexperience of both the entrepreneurs helped Macpac to enter in both domestic and internationalmarket.
(Johnson and Scholes, 2000)
During the year 1990 Macpac started to capture the international business and at the same time saleshad jumped to NZ$8 million which is 35% overseas sales. The company started direct business withthe Australian retailers by selling them the products. This was achieved because of the work cultureand team work. Macpac was considered to be the one of the iconic brands in Newzeland. Thedirector of the company Macpac believed in de-centralisation of powers and was always againsthierarchical management style in the organisation. The secret of success for Macpac is behind theteam work culture and the production of the quality product. This leads to the lot collaboration inthe company. The change in strategy by Macpac in 1996 proved to be successful, wherein theydecided to sell their products directly to the overseas retailers, hence resulting in elimination of middle agents from the sales. Till twentieth century this strategy turned to be successful and wasrunning smoothly, but profits of Macpac started to dip down with the start of 21
century, itincurred losses in three years 2001-2005 and there were lots of reasons for that and they will bediscussed below.