StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Finance & Accounting
  • Critically evaluate the benefits and disadvantages of expansion via organic growth versus expansion via acquisition. using real

Critically evaluate the benefits and disadvantages of expansion via organic growth versus expansion via acquisition. using real - Essay Example

Extract of sample
Critically evaluate the benefits and disadvantages of expansion via organic growth versus expansion via acquisition. using real

This global business related news is encouraging in the context of financial downturn of the year 2008, still casting its shadow on the global growth of large businesses. Luypaert & Huyghebaert (2007) attempt a statistical analysis of the expansion via acquisition strategy becoming a trend, as in 2005 only, 29,585 acquisitions got materialised. Companies prefer to grow and expand through acquisitions rather than organically because it is the quicker way of growth relatively to internal growth as the aimed company is well positioned with its production, distribution and customer base. It also minimises the risk of investing for the increasing growth of the company. Otherwise also, expansion via acquisition could prove to be cost-efficient way out relatively to organic growth, especially when the replacement cost of assets is higher than the concurrent worth of the aimed assets. Another benefit of the expansion via acquisition is that in comparison to organic growth, it can be acquired by paying through the stock as well. It can be a way-out for companies facing cash-crunch or for those companies already deficient in debt power. Literature reveals that during flourishing stock market behaviour, bidding companies prefer to pay for the acquisition through stock. ...Show more

Summary

Critically evaluate the benefits and disadvantages of expansion via organic growth versus expansion via acquisition using real life case of Tesco to illustrate your answer. Expansion via acquisition has become one of the leading business expansion strategies worldwide, particularly for large size businesses…
Author : auernia
Critically evaluate the benefits and disadvantages of expansion via organic growth versus expansion via acquisition. using real essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Critically evaluate the benefits and disadvantages of expansion via organic growth versus expansion via acquisition. using real"
with a personal 20% discount.
Grab the best paper

Related Essays

Critically examine the internationational expansion strategy for Starbucks.Discuss the motivations for the expansion and the app
ice’ in Seattle (Ambai University, 2004). From there, that small coffee shop has come up a long way to emerge as a Corporation. Starbucks Corporation has been one of the successful coffee chains in the last few decades. The company has achieved its position through aggressive expansion strategies to survive the competition.
11 pages (2750 words) Essay
Global expansion
When a company deals with other foreign companies and their governments, they need to be aware of the cultural differences and its impacts on their business. They have to set financial objectives, rules and regulation, code of ethics, business goals etc. tapping into the foreign countries may lead to the following issues to the host country: Diversified cultures of international markets.
3 pages (750 words) Essay
Territorial Expansion
Massive protests followed Houston to listen to their demands. The reason for the frustration among people was the war with Mexico in which the people of Texas were having heavy setbacks and because of the issue of slavery. How did the U.S. acquire the territory in question?
4 pages (1000 words) Essay
Westward Expansion
Widespread beliefs regarding religion, health, and medicine were greatly impacted by the culture of the “rush” mentality, whose adoption was silver, gold, and the aggressive seeking of land. The phenomenon of the Westward Expansion refers to the manner in which United States exploded both in population and size during the era of the 1800s.
4 pages (1000 words) Essay
Organic Growth
Growth and profits are very essential for the very basic existence of a company. The three most commonly used measures are either by increase in profits, increase in assets or increase in sales. A company can achieve its growth objectives in two ways: either internally (organically) by the means of increasing its own assets or output through reinvestments or externally (inorganically) by the means of mergers and acquisitions.
11 pages (2750 words) Essay
Prison Expansion
(Warren 5). At the beginning of 2008 there were 2.3 million people incarcerated in the United States. This is out of an estimated population of 301,139,947 (using 2007 census data), or to say it another way, roughly one in every 99 people in the United States is behind bars (Ibid.).
6 pages (1500 words) Essay
Exporting goods via airfreight
imes, airfreight is the least expensive way to transport goods by pointing out and discussing on five cost components that may reduce the total cost of goods when transported by air. Airfreight costs have their basis largely on the rates that carriers charge. Transportation
2 pages (500 words) Essay
Expansion & growth is the topic to write about
Thesis statement: The history of California as a colony and later as a free state deeply influenced its expansion and growth. Before European colonization, California was under the control of the indigenous population in this area. So, the first period in the history of
1 pages (250 words) Essay
Global Expansion
A crucial phenomenon about globalization is that there should be a medium to make it a reality. To this end, Ellis-Christensen, 2012 observes that “globalization is said to bring people of all nations closer
2 pages (500 words) Essay
Global Expansion
The research also incorporates analyzing the accounting policies followed by Toyota in respect of its international expansion and the different issues faced by the same. The paper also
12 pages (3000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT