Strategic and Change Management

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...