Introduction Of Organic Growth Marketing Essay

Introduction Of Organic Growth Marketing Essay Organic growth represents the true growth for the core of the company, as a results of how well one company can use its internal resources to expand profits. Its the process of business expansion due to the increasing of sales, overall customer base, total assets, intangible assets or any combination of the following above. It also reflect the sustainable capacity of one company As a results of organic growth, Inorganic growth is the opposed of organic growth which results mergers and acquisitions, such as growth that are not coming from one companys existing business which also includes the impact of foreign exchange or growth that come from buying a new business that may be negative. Organic growth expanding are adjusted for the effects of acquisitions and disposals of business. Organic growth does include growth that are over a period that results from investment in businesses in one company owned at the beginning. Acquisitions, and the decline from sales and closures of whole businesses are not included into the organic growth expanding. When a company does not disclose organic growth number, its usually possible to estimate them by estimating the numbers for acquisitions made in the period being looked at and in the previous year, Its useful to break down organic sales growth into that coming from market growth and that coming from profits gains in market share, this also makes it easier to see how sustainable growth is. Relating to organic input in an organization, it can also relate to the act of closing or shutting down cost centers through established organic methods instead of waiting for a finance list. How is Organic Growth Measured Organic growth is generally measured in terms of increased sales, profits or total assets. And most companies are constantly faced with the challenges from this in their business. Businesses can choose to build their in-house competencies, invest to create competitive advantages, differentiate and innovate in their products or service line or leverage upon the market, products and revenues of other companies. Simply put, business expansion with the help of the businesses core-competencies and sale refers to organic growth and is in contrast with inorganic growth approach where expansion objectives are met though mergers and acquisition. This is also known as MA which is one of the most popular program now. An excellent example of organic growth probably (Apple Inc.). The growth rate at Apple is driven by trend-setting product innovation. Macintosh, I Mac, I Pod and the latest technological breakthrough pioneered by Apple is the I Phone, dont mention about the latest I phone 5. In research, Steve jobs, Founder of Apple Inc. comments Our belief was that if we kept putting great products in front of our customers, they would continue to open their wallets. Microsoft, on the other hand is a clear case of In-Organic growth is measured as it has successfully completed more than 100 acquisitions since 1986. Inorganic growth or growing through mergers and acquisitions also provides the following benefits below to the business plan. To reduce market competition Instantly adds service lines to acquiring company Provides access to fresh customer base and adds new geographical locations within Acquire an established marketing channel New management skills Time to market substantially reduced which gives businesses a significant competitive edge Building brans and marketing channels to serve customers better Focus on growth strategies (It is easy to prepare and plan well) Organizational efficiency Industry and economic factors play a crucial role in motivating companies to adopt the inorganic route for growth. Slowing industry growth rate, fragmented industry, too many competitors fighting for the same market share are some compelling reasons which push businesses towards MA route. Other than that, economic slump creates opportunities for cash rich companies to get hold of unutilized capacities of loss making competitors at attractive valuation. The success of organic growth is a test of the managements ability to share a common vision and deliver that vision. Companies growing organically not only measure their success on financial metrics alone but take careful note of other metrics like customer satisfaction metrics, product quality metrics, logistics and supply chain metrics etcà ¢Ã¢â€š ¬Ã‚ ¦..some of the typical characteristics of businesses which believe in the benefits of organic growth are customer centricity. 3.Types of Organic Growth Type of organic growth strategies are built up of, Revenue, Headcount, Public Relations Quality. This are all the four main pillars that support Organic Growth. Revenue is the lifeblood of any business. Without dollars flowing in, it is impossible to pay employees, suppliers and vendors. Businesses that are growing organically seek to grow revenue volume in the most efficient manner possible. Revenue growth eventually leads to profit growth, which is the final goal of organic growth strategies. Headcount is critical for any growing business. As revenue grows, companies can afford to hire more employees. For customer service, sales and marketing and production departments to function efficiently, they must properly well staffed. A good HR department is critical to the success of a growing company. Quality is more important than quantity for company headcount, as employees are the biggest asset of any small or big enterprises. Public Relations and advertising allow companies to get the word out about their products and services. Good public relations drives traffic to company websites and gets perspective customers attention. Good public relations strategies also allow for revenue growth to keep those properly staffed departments busy. While bad public relations can be more damaging to a company than good Public relations can be effective. Word of mouth or social media and traditional public relations avenues all must be used and monitored to ensure positive word of mouth advertising and branding. Quality in growing company started with the first contact a customer has with the corporation all the way to delivery of the final product. To successfully grow any enterprise, there needs to be a quality product. Organic growth relies on repeat business from satisfied customers. Customers will rarely buy a product a second time if the first impression or experience isnt top notch. Quality control and customer service are critical to gaining a sufficient sales volume to grow a company. Whether its a website or an in person sales presentation, the initial contact with potential clients must be top notch. Product quality, customer service and product support need to continue the standard of excellence that the marketing and sales departments begins. With all four pillars growing in sync, organic growth is inevitable. Organic Growth (Internal External Methods) Compare Internal growth External growth, internal growth is typically a slower process and can be financed by asking shareholders to contribute more capital, or by ploughing back profits into business. The main disadvantage of such an approach is that it takes time. In the meanwhile, rivals may be expanding and gaining competitive advantage. However, the main advantage is that the business is able to maintain a healthy gearing position. Because it is not building up external debts that require interest repayments, it is better placed maintain solvent growth. In addition ownership and control of the business is more likely to be retained by the existing shareholders. Many of the leading companies owe much of their early growth to internal growth, where through hard work and careful planning the original owners were able to grow their businesses successfully. While External growth can be carried out by seeking external finance, or merger and acquisition. These approaches tend to reply on bringing external fiancà © into the business in order to fund expansion, and therefore can lead to a deteriorating gearing postion. Merging with another company is a mutual arrangement whereby two companies join together. Typically one company will issue shares in exchange for shares in another company. A take-over occurs when one business acquires a controlling interest in another. This Involves purchasing at least half of the shares in the company being taken over. External growth enables fast expansion of business but there are a number of problems. Where two companies come together, the cultures may be quite different and difficult to match up. In additional there may be disagreements between managers who are used to work in a different practices and systems. The business change needs to be handled carefully from the human resource management perspective. Experts Comments According to experts, getting organic growth right is the key point to success. Organic growth is the lifeblood of every company. While acquisitions are a path to growth, Booz Company research shows that few acquisitions can be justified on cost synergies alone; buyers must be able to grow organically what they acquire. Yet most companies struggle with organic growth, especially when their business models and markets have matured. There are many reasons for this. For example, short-term pressures to produce profits can stunt investment, and typecasting some businesses as cash cows and others as growth engines can become self-defeating. One very common problem is chasing rainbows that will never be caught, while the best opportunities are hiding in plain sight. In an economy still facing massive headwinds, the ability to grow organically is more crucial than ever; companies can no longer see organic growth as an everyday task best to the operating units. Organic Development Preferred Many see organic growth as the most preferred growth strategy, for example, Banks considered organic growth to be the number one strategic priority, a survey by PricewaterhouseCoopers (PWC) has found that 92 percent of survey participants saw opportunities more on organic growth than in acquisition. The proportion was 10 percentage points higher. The survey of more than 100 senior banking executives found there could be a growth in branch expansions in 2012, as 39 percent of those polled said they planned op open up to 25 braches this year, while 11 percent planned to open more then than 100 branches. According to one of the spoke man, that fiqure was in line with the finding that 35 percent say small and medium enterprises (SMEs) will generate the highest growth in lending in 2012, while savings accounts (43 percent) will be the most popular form of funding. Conclusion To conclude, Overall growth option offer intrinsic value in their own way and the choice is dependant on the market and industry scenario as well as the strategic vision of the business. In face, a good management principle would be to use a combination of both methods to gain a steady growth pattern in which benefits the business in a long run. Using organic growth options for things which one does best, and using inorganic growth measures for the expanding the business potential is a potent mix when it comes to gearing up for growth. Inorganic growth is not necessarily in conflict with the organic growth, acquisitions are meant to complement the organic growth rather than act as a substitute, that talent and technology that was elsewhere and which can now be integrated to boost company performance. Thus, smaller companies with low risk taking abilities should establish their presence in market through organic approach to growth and eventually should look to accelerate their growth rate by strategic acquisitions once they have financial ability to bear the risks that come along with mergers and acquisitions. Bigger companies on the other hand should allocate their investment capacity between internal investments on enhancing competitiveness and acquisitions to tap into faster growth options by consolidating within the industry, acquiring presence in other markets and bringing in newer technologies or talents that complement and enhance their competitive position.

Critical thinking Essay

1. What do the authors mean by â€Å"templates†? It means that you can use right away to structure and even generate your own writing. 2. What does critical thinking require? It requires the questioning of assumptions, develop strong claims, offer supporting reasons and evidence, and consider opposing arguments. 3. How would you describe the difference between â€Å"arguing† and â€Å"entering† a conversation? In â€Å"arguing†, you assert the views of yourself and when you â€Å"enter the conversation†, you present the views of other people. 4. What famous argument do the authors use as an example? Martin Luther King Jr’s â€Å"Letter from Birmingham Jail† 5. Using the 1st template on page 9, fill in the blanks with a controversial topic that interests you. He claims that gay marriages are acceptable, and I have mixed feelings about it. On the one hand I agree that a gay marriage is a commitment. On the other hand, I still insist that a marriage should be between a man and a woman. 6. What do the authors mean by a â€Å"larger conversation† and how are you supposed to use it as a writer? In particular, read page 19 carefully. â€Å"Larger conversation† helps the writer show what the information is responding to the point of the thesis. 7. What suggestions do the authors make for starting your paper? Start with what others are saying as in the title of the chapter recommends. 8. Isolate 10 templates you might actually use in your writing and explain the function of each. * Americans have always believed that __________________. * Conventional wisdom has it that ______________________. * Common sense seems to dictate that ___________________. * The standard way of thinking about topic X has it that _____. * It is often said that _________________________________. * My whole life I have heard it said that __________________. * You would think that ______________________________. * Many people assume that ___________________________. * I’ve always believed that ___________________________. * When I was a child, I used to think that ________________. 9. Define â€Å"return sentence.† A sentence that returns to the motivating â€Å"They say†. 10. On page 29, the author describes the qualities of a good summary. What are they? A good summary requires balancing the writing when the author writes and emphasizing those aspects of what the author is trying to say. 11. From each of the verb categories listed on page 37, select 5 that you think you might actually use in an argument. * Argue * Observe * Claim * Emphasize * Believe 12. According to the authors, why is it important to quote others? Quotes give tremendous amount of credit to the summary and also helps make sure it’s fair or equal. 13. Briefly summarize what the authors have to say about the relevant quotations. You need to have a sense of what you want to do with the quotations. 14. Give 5 examples of templates used for introducing quotations. * According to X, â€Å"_____________________.† * X Himself writes, â€Å"____________________.† * In her book, _______, X maintains that â€Å"___.† * X agrees when she writes, â€Å"______________.† * X complicates matters further when she writes, â€Å"______.†

The Industrial Revolution During The 20th Century

The industrial revolution was one of the biggest innovations from the 18th to 19th centuries. The Industrial Revolution changed the way the world was looking at altogether; new things were possible, things that no one ever could’ve dreamed of. In addition, creating new methods of production, manufacturing times were greatly lowered, meaning the product could be given to the public faster and in larger quantities. The Industrial Revolution was when the world finally began to move into the future, due to it, we have the world we live in today. The American economy was caught in transition in the event of the Civil War. What had been an almost purely agricultural economy in 1800 was in the first stages of an industrial revolution which would†¦show more content†¦When the Industrial Revolution reflects upon, not every change can be thought of in a blissful manner. Factories needed workers, and often time children were resorted to as cheap employees. Many children were killed during the Industrial Revolution; these children obviously didn’t have the motor skills to be working in factories. Eventually child labor laws were created to put restrictions on child labor exploiters. All the labor was done manually and required physical forces so the productivity was slow, an example was the cotton production, which involved only in person to clean the cotton by extracting the seed and produce threat, subsequence the demand of cotton John Kay invented the Flying shuttle to speed the process of weaving and the demand of threat. Then, because of the advance other inventors came with more innovated ideas. Another great invention was the spinning mule in 18th century invention that spun textile fibers into yarn by an intermittent process: in the draw stroke, the roving is pulled through and twisted; on the return it is wrapped onto the spindle. The steam engine began to

The Patent And Its Effect On The Improvement And...

A patent is the right to individually protect intellectual property from others making, using, selling or importing the invention granted by the United States government. The patent was first seen in 1474 in Venice, when the statute allowed grants and restrictions of European monopolies. Similar to the modern patent, an explanation, description, and proof of the inventions usefulness was required in order to receive the patent. Over time, the British system adopted this system and after U.S. and British history together, the U.S. government inevitably adopted and modified it to what the Patent Laws are today. Briefly, the importance of the patent being legally accepted contributes to the improvement and advancement of overall technology. It allowed individual progression without the doubt or fear of others or government embezzlement. This proved that over time, society was getting less malignant and trust was improving on a political and social level. The following will explain the importance of a patent and the different types of patents and brief international patenting. Also, the legal cases that helped shape policies and regulations will be explained and interpreted in detail to show the history of U.S patents was not perfect and that some modifications were made along the way to reach what it is today. Lastly, the requirements and detailed process on how to obtain a patent and what one can and cannot do once a patent is obtained will be explained. The importance of aShow MoreRelatedTechnology And Economic Growth. When Studying Economics,1646 Words   |  7 PagesTechnology and Economic Growth When studying economics, one often finds periods of growth as well as periods of recession. There have been many reasons for these highs and lows throughout history. 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