Case study: Growing a Company by International Acquisition

(Daniel Lahai Dimoh)

University of the People

BUS 2207

Written Assignment

Unit 7

Professor Azza Z Alsahhar

March 10th , 2023

Introduction

The acquisition of Berendsen provided the Davis Service Group access to new resources, such as

well-established customer relationships, advanced technologies, and skilled personnel. It also

gave them access to new markets in Europe that were not previously available through organic

growth. This allowed them to increase their market share while providing services to more

customers at a higher level of quality.

1. Describe two major ways in which a company can grow. Give examples to illustrate the
two ways of growing.

Growth is essential for a company to stay competitive and increase profit margins. Companies

can grow in two main ways: organic growth and inorganic growth. Organic growth is when a

company uses its own resources to expand, while inorganic growth is when a company acquires

another business or enters into strategic partnerships with other companies. International

acquisition involves buying another business or entering into joint ventures with foreign

companies in order to expand operations into new markets abroad. This type of growth allows a

company to tap into new markets quickly and efficiently while also gaining access to new

technologies and resources. For example, if a company decides that it wants to break into the

Chinese market but does not have the resources or knowledge necessary to do so, it may decide

to purchase an established Chinese firm that has already established itself in the local market.
2. Businesses grow when they have the resources to expand, and opportunities exist for
growth.

Explain how the acquisition of Berendsen provided such a good opportunity for the Davis
Service Group.

The acquisition of Berendsen provided the Davis Service Group access to new resources, such as

well-established customer relationships, advanced technologies, and skilled personnel. It also

gave them access to new markets in Europe that were not previously available through organic

growth. This allowed them to increase their market share while providing services to more

customers at a higher level of quality.

What aspects of European Union markets encouraged horizontal growth of the Davis
Service Group?

The European Union markets encouraged horizontal growth of the Davis Service Group through

their open borders policies which allowed businesses to operate freely and easily across all

member states without any restrictions. This made it easier for businesses like Davis Service

Group to expand into different countries without having to worry about legal or regulatory

hurdles that would have arisen if they had tried organically growing into those countries instead.

In addition, by operating across multiple countries within the EU, the Davis Service Group was

able to take advantage of economies of scale which enabled them reduce costs and increase

profits significantly.

What aspects of European Union markets encouraged organic growth as opposed to

inorganic growth?

Organic growth is encouraged within European Union markets due its sophisticated financial

systems which enable companies like Davis Service Group access capital from different sources

such as private equity firms or venture capitalists at competitive rates that would not be available

elsewhere; thus providing an incentive for organic growth rather than relying on acquisitions
alone. Additionally, due regulations set by the EU governments that ensure fair competition

within industries, it has become easier for companies like Davis Services group who are looking

for organic growth opportunities by developing innovative products or services without having

worry about unfair competition from larger companies since they are protected under these

regulations (Odusola A., n. d).

3. 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?

Organic Growth: Organic growth involves expanding a business horizontally or vertically by

introducing new products and services or entering new markets. This can involve investing in

research and development, expanding distribution channels, or launching marketing campaigns

(Hitesh, 2019). An example of this type of growth is Apple introducing the iPhone XR, which

enabled them to enter the midrange smartphone market.

Inorganic Growth: Inorganic growth involves acquiring other businesses to expand operations.

For instance, the Davis Service Group acquired Berendsen plc to gain access to the European

Union (EU) market (Odusola n.d.). The EU markets offered opportunities for horizontal

expansion as it provided access to new customers and resources that would have been difficult

for Davis Service Group to obtain organically within their own home markets. Additionally, the

acquisition allowed Davis Service Group to gain expertise from experienced personnel as well as
access advanced technology in certain sectors such as medical equipment manufacturing

(Odusola n.d.).

If the company were looking for further expansion opportunities outside of Europe then Africa

could be an attractive option due its abundant resources and potential market size (Odusola n.d.).

Africa also offers a range of incentives such as tax breaks, grants and subsidies that could

encourage foreign investments(Odusola n.d.). However, there are some factors that might

discourage investment in Africa such as high levels of corruption and political instability

(Odusola n.d). Therefore any decision should be carefully weighed against both potential risks

and rewards before making any investments into African markets .

Inconclusion , the acquisition of Berendsen provided a great opportunity for the Davis Services

group because it allowed them access new resources as well as enter new markets with ease due

open border policies set by EU governments; while at same time encouraging organic growth

opportunities through its sophisticated financial systems and fair competition regulations (Hitesh

B., 2019).
 References:
Hitesh, B.,(2019). Organic Growth: Meaning, Examples & Strategies To Achieve Organic
Growth In Business Retrieved from https://www.marketing91.com/organic-growth-in-business/

Odusola A.,(n. d). Investing in Africa Is Sound Business And A Sustainable Corporate Strategy
Retrieved from https://www.unorg/africarenewal/web-features/investing-africa-sound-business-
and-sustainable-corporate -strategy
Abstract titled: Water pollution and human health

The abstract titled "Water pollution and human health" is an excellent example of a well-
structured and informative abstract. It succinctly outlines the key points of the research,
including the purpose, methods, findings and conclusion. The abstract provides a clear summary
of how water pollution can affect human health, highlighting potential short-term and long-term
effects. It also discusses how water pollution affects different socioeconomic classes differently.

The abstract explains how water pollution can cause a number of health issues, such as
respiratory problems, skin diseases, neurological disorders, and even cancer. It goes into detail
about how different sources of water pollution contribute to these health risks. It also discusses
the necessary steps that need to be taken in order to reduce water pollution and improve public
health. This is followed by a discussion of Bernti Dybern's 1974 study on global water pollution
(jstor.org).

In terms of style, this abstract is very easy to read as it follows a logical structure that clearly
conveys the main points in a succinct manner. The language used is concise yet effective in
communicating complex ideas. The author has provided a comprehensive overview of their topic
without going into too much detail. They have included relevant facts and figures to further
explain their points and have provided links to other articles for further research. This makes it
easier for readers to quickly understand the main points without having to read through an entire
article or research paper.

Overall this abstract does not have any major flaws; however it could be improved by providing
more detailed information regarding the methods used for data collection and analysis as well as
further explanation of the results obtained from these methods. Additionally, more discussion
about potential solutions to address water pollution would provide useful context for readers to
consider when assessing the implications of this research. (Bernti Dybern, 1974)

Reference

Alexandra B. ( 2007-2023) The Water Project . Water in Crisis - Sierra Leone. Retrieved from:
https://thewaterproject.org/water-crisis/water-in-crisis-sierra-leone

Bernti Dybern. (1974). Water Pollution: A Problem with Global Dimensions. Ambio, 3(3/4), 139–145.
http://www.jstor.org/stable/4312068
The abstract titled "Water Pollution and Human Health" provides an overview of the global water crisis,
the effects of water pollution on human health, and current solutions to address the issue. It begins by
citing Alexandra B. (2007-2023) The Water Project's research on water in crisis in Sierra Leone
(Thewaterproject.org). This is followed by a discussion of Bernti Dybern's 1974 study on global water
pollution (jstor.org). The abstract then goes on to explain how polluted water can cause illnesses such as
cholera, dysentery, and typhoid. It also outlines some steps that can be taken to reduce the impact of
this pollution, including improved sewage systems, better agricultural practices, and increased public
awareness.

In terms of style, the abstract presents a clear overview of the material which is easy to follow. It follows
a logical structure and provides enough detail for readers to gain an understanding of the topic without
becoming overwhelmed with information. However, it could be improved by providing more examples
from international contexts or exploring further solutions that can be implemented at a local level.
Additionally, additional sources could be included to provide further evidence for claims made in the
abstract. Overall, this is an effective abstract which communicates key points clearly; however there are
ways in which it could be enhanced for improved clarity and depth of analysis .

Alexandra B. ( 2007-2023) The Water Project . Water in Crisis - Sierra Leone. Retrieved from:
https://thewaterproject.org/water-crisis/water-in-crisis-sierra-leone

Bernti Dybern. (1974). Water Pollution: A Problem with Global Dimensions. Ambio, 3(3/4), 139–145.
http://www.jstor.org/stable/4312068