what is organic growth & inorganic growth in business organistion?

Answer 1

Organic growth is the rate of a business expansion through a company's own business activity, while inorganic growth means that the company has grown by merger, acquisitions or takeovers. Organic growth is also sometimes knows as Internal Growth and inorganic as External Growth.

The number-one imperative in today's business is growth - organic growth. Companies are looking for ways to grow organically primarily because there are so few attractive alternatives. The general futility of using mergers and acquisitions to grow is well accepted now: M&A most often destroys rather than creates shareholder value. Meanwhile, cost management as the means of growing profits has diminished returns. In the last few years, companies have wrung just about all of the "easy" cost savings out of their budgets, so that now each dollar of cost reduction costs more. All the "low-hanging fruit" has been picked.

In this report, we identify four paths for organic growth:

Imitators grow by process or asset replication.
They have a successful asset - for example, a store model (as in Home Depot and McDonald's) - and they become expert at reproducing that asset in ways that keep costs down.

Inventors grow by exploiting their technological superiority.
Their products and services are consistently superior to their competitors'. Invention lies not solely in capabilities, but in inventing the right products and services for customers.

Insiders' growth is driven by customer relationships.
Marketing superiority is the organic growth engine.

Illuminators grow by seeing the gaps in the marketplace more clearly and sooner than their competitors, and filling them first. Their organic growth is driven by anticipating unspoken customer needs. Procter & Gamble calls these gaps "white spaces" - places where they can deliver new products or services that expand their core business.

We also delineate the characteristics of organic growth companies. Their strategy is long-term, with an emphasis on sustainability and focus, but they believe execution is ultimately more important than strategy. Their products and services are closely tuned to the needs of customers within serviceable market segments. They are organized around markets, not products. Their view centers on what the market needs and what their business model can deliver quickly and efficiently. Their organization and governance structures are networked rather than hierarchical, accountability is well established, and decision-making is delegated and distributed. They are decentralized, which is another way of saying they are close to the customer, with few intervening layers in the organization. Their leaders are patient, persistent, focused, and eager to learn and guide - typically not the swashbuckling type. And their business processes and information systems are highly adaptable, focused on organizational interaction and integration.

Answer 2

Organic Growth Vs Inorganic Growth

Answer 3

Organic Growth In Business

Answer 4

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Organic growth refers to a company that increases in terms of markets served and/or market share through expanding its core business. Inorganic growth refers to a company growing through acquiring or mergering with other companies. Hope this helps!

Answer 5

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what is organic growth & inorganic growth in business organistion?

Answer 6

When you grow your business through strong management and effective planning, you know your business inside and out. You can move quickly to take advantage of changes in the marketplace, and you can experience the satisfaction of seeing your vision come to fruition. You also have the choice of growing your business at a rate that is comfortable for you. Instead of merging with another company or buying one, you can sell your business when it is mature. This can create profit for you.

Growing your business inorganically involves joining with another business through a merger or an acquisition. This immediately expands your assets, your income and your market presence. You will have a stronger line of credit because of the combined value of the two businesses. You will also benefit from the added expertise from personnel at the new business.