organic growth(capital structure)

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M.B.A

Why should companies do application merge?

Is organic growth is better or in organic growth?

Mergers and acquisition

A merger happens when two companies are

combined with other company

an acquisition is an act of acquiring effective control

by one company over assets of other company

METRO-Habib Cash & Carry

Impact after merge

Financially strong

comprehensive product range at good

quality and competitive prices

It has enhanced relationships with its

suppliers.

Advantages

Faster way of growth

Market share

Quick way of reduce competion

Disadvantages

Higher cost Restructure

Organic growth

Organic growth

Occurs when business grow

internally using its own resources to increase the scale

of its operation , sale revenue and

to value its shareholders.

By organic growth

The market share of Coca-Cola is maximized

Today, Diet Coke/Coca-Cola light isavailable in over 150 markets around the world

Coca- cola zero

Coca-Cola zero was created with young adults in mind and offers great Coke taste, uplifting refreshment and zero suga

Several different ways to grow

Advantages

Better control and

coordintation

Relatively inexpensive

Maintains corporate

culture

Disadvantages

Diseconomies of scale

Cope with demand

A need to restructure

conclusion

• organic growth The main focus is productivity enhancement and cost reduction. In this approach companies grow over the period of time.

whereas

• Inorganic growth is seen often as a faster way for a company to grow when compared with organic growth.