For any level of growth to occur businesses and their staff must be willing to embrace change. In the case of international expansion, the market must first ensure that its home base operations are strong enough and that the industry has achieved a level of maturity. Only, then should the company consider expanding and acquiring business operating outside their borders.
There are two significant ways by which a company can grow by organic growth and inorganic growth. …show more content…
Berendsen a strong market leader line Davis Service Group (Sunlight) operates in seven (7) EU countries and like Sunlight provided same textile service within that geographical area (Davis Case Study, n.d.). The inorganic growth decision by Davis Service Group to grow its resources through acquisition rather than merger was an ideal opportunity for the company. Although they could have opted at setting up a new outlet in the same region as Berendsen and become their competing rival, the possibility exists for an acquisition instead as Berendsen has it strengths of local experience and market connections. Hence it was an opportunity for Davis Service Group to take over and build on reputable networks of existing customer connections (Davis Case Study, …show more content…
Sunlight and Berendsen are both specialist companies with similar production stages. The opportunity and possibility to combine their knowledge, skill sets and expertise can be beneficial to both entities. In fact, the acquisition can be deemed as a strategic fit. There was a minimal barrier as they both operated within the EU business space hence the purchase was smooth and perfect. There was no language barrier since Berendsen's companies functions through some European countries where English is used as a standard business language. Regarding cultural differences, the two companies (Sunlight and Berendsen) has the same procurement patterns. The EU currency is linked to each other in the countries in which Berensden currently functions (Davis Case Study,