Multinational Management Case Study

794 Words4 Pages
BUS 2207 - Multinational Management Anonymous University of the People In reference to the case study, this paper will discuss two major ways in which a company can grow, explain how the acquisition of Berendsen provided a good opportunity for the Davis Service Group, the features of EU markets that have particularly stimulated horizontal and inorganic growth of the Davis Service Group. The essay will also recommend best areas in the world for a company to expand. Introduction I think many businesses can find opportunities overseas if they have the resources and knowledge of the main strategies of how to grow. Two major ways in which a company can grow One major strategy is to understand the industry and market of what the company produces…show more content…
The European Union market involves 27 member countries with a big market potential of approximately 500 million consumers. It is easier to operate a business in the EU because goods move freely while trade has increased by 30% from 1992 due to the development of the Channel Tunnel, fast trains and cheap air links. These transport developments have helped people to travel within Europe effortlessly. Technology has also enabled corporates to communicate in real-time. Organic growth is when a company increases turnover of an existing business and inorganic growth means the acquisition of another business by merger or takeover. The European Union encourages organic growth due to the increased number of consumers within its fast developing region. Companies in East Europe that were part of the Soviet Union are unsuitable to take over a business because they were owned by the government with poor equipment may not have the financial capability and organic was the only option as in the example of Davis Service Group and…show more content…
It offers market access to all EU and delivery of goods is very efficient within that region. The labor market is also flexible and has the most productive workers without restrictions on overtime and it is the reason that most companies operate 24 hours a day throughout the year. Some discouragements of setting a business in Denmark are, business entities have a lot of documentation and regulations and banks are unwilling to grant loans to single proprietorship due to its small size. The common currency cannot go unstated because it has helped traders in the marketplace to do business more
Open Document