Submitted by: Submitted by manickum
Views: 115
Words: 4492
Pages: 18
Category: Business and Industry
Date Submitted: 10/04/2014 02:53 AM
Table of Contents
Question 1 Case Study Page 3
Question 2 Organisation Process Page 9
Question 3 Strategy Page 13
Question 4 Organisation Diagnosis Page 15
Question 5 Resistance to Change Page 19
References Page 23
Question 1
1.1 The Difference between organic and inorganic growth
Organic growth is the development of business due to increasing customers or customer base, increasing output per customer, new sales per customer, or a combination.
Inorganic growth in the process in which business expands due to acquisitions of businesses or merging with other organisations to increase customer base, service offering or to compliment existing business
Advantages of Organic Growth
Accrued Knowledge of industry and the business means one can move quickly to take advantage of changes in the marketplace.
The business can be grown at a rate that is comfortable and manageable
Disadvantages of Organic Growth
Resources are limited to the existing business
Existing infrastructure may have hit a growth ceiling
The threat of competition could be a deciding factor eg. larger organisation could have a greater influence on suppliers
Focus is distributed on both growth and sales
Advantages of Inorganic Growth
Assets, income and market presence are immediately increased
Access to resources is greater because of the combined value of the two businesses. Added Expertise from new personnel will add to knowledge base and organisational experience
Disadvantages of Inorganic Growth
Management capabilities need to increase due to add manpower
More assets to monitor use and dispose of as your business needs change.
The focus of the second business can take over the vision of the existing business. You may enter areas of the marketplace where you have no expertise.
Accelerated growth can lead to unforeseen debt
In The case study IMI has ventured both into organic and inorganic growth. Organic in that they have...