BUSINESS ENVIRONMENT

Business Environment: Organizational Growth and Expansion

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Business Environment: Organizational Growth and Expansion

Introduction

Every business has a maturation time, and the expansion due to this process and identify how they can grow. So there are businesses that expand through increasing sales outlets, others to increase the supply of products and a more diversified market. One and the most important aspect of organizational growth is Organic or Internal growth (Hall, B.H, 2002, pp. 35-51).

Organic Growth

The word "organic" comes from the natural sciences, mainly biology and chemistry, structure and meaning chains of carbon atoms and organic molecules. By analogy, the term "organic growth" was borrowed from the business world to denote the expansion based pas existing company structure, in contrast to the expansion based on diversification or acquisition.

There are three ways to increase the company:

Organic growth

Expansion at the expense of other businesses (diversification)

Structural changes: acquisition, acquisition or transfer of control.

For entrepreneurs the possibility of organic growth is always a show of force, because it shows their potential to improve business (Barber, B. and Lyon D, 1996, pp. 359-399). The company, successfully developing na-based own resources, has proved its competitiveness, and confirms that customers prefer its products and services. This means that the rate of growth exceeded the average market, that is, the market share captured. Competition - the driving force behind any business. Organic growth of the company is in fact a reflection of its competitiveness: the ability to develop new products, win new market segments and new geographic markets assessed. Organic growth is defined as growth that a company can achieve their own power. The goal is to increase the value in all business areas continuously and sustainably in the long term. This allows a company to grow organically, different areas can be optimized.

Extension of the core business

Improvement of services

Costs

Professionalization of marketing and sales

Growth-promoting organization structure create

Which is the most promising growth path for a company, it must be analyzed individually (Chatterjee, R, Meeks, G, 1996, pp. 851-868). It is important to locate the growth potential of the individual business areas and properly assessed. Every business is capable of being expanded, it is important to identify the degree of maturity and type of expansion that more is provided. If you want more information, we invite you to call us, or fill out the form (Andrade, G. Mitchell, M. and Stafford, E, 2001, pp. 103-120 ). Apart from these there may be a number of expansion techniques which organizations practices and implements in their business operations. However, modern concept of business expansion depends upon two main concepts; “Research and Development” (R&D) and “Mergers and Acquisitions” (M&G). In this paper we will discuss the influence of both on organizational development, while

Research and Development (R&D)

Business expansion and growth in the modern world depends upon the availability of modern resources and grasp of technology by the organizations. Those organizations which are adaptive to modernization and consider technological up gradation as an important aspect of their business operations are more likely to ...