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Growth is an important objective for many organisations, but for organisations entering the market it’s an overriding objective. But which strategy offers better competitive advantage, organic growth or growth by acquisition?
Organic growth would be more of what you do already, is safe and is great for companies that innovate, but can be difficult to maintain. Growth by acquisition generates financial, operational and managerial synergies. It provides access to complementary markets and products. It’s disadvantages are that an over-confident manager may find that he subsequently faces nasty surprises and financial losses. What’s needed is a combination of strong organic growth together with sensible strategic acquisition.
That’s my view and you can join the debate with The Open University.
This week on The Bottom Line
Evan Davis on... growth
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Evan highlights those business bosses who nurture their companies to grow and those who takeover others, and asks how growth can be achieved fairly. Read more : Evan Davis on... growth
Liz Hartnett on... IT disasters
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Research student Liz Hartnett looks at IT methodologies and why people are often the key to getting things done. Read more : Liz Hartnett on... IT disasters
Sharpen your skills
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Get to grips with the managerial challenges - get to know the Open University Business School. Read more : Sharpen your skills
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