Choosing the right business strategy can give a company a competitive advantage over its rivals. A strategy is a plan to meet business objectives. A strategy needs to set the scope and direction of a company. Bibby Line Group has extended its scope to branch out into new products and markets. The direction the company has taken has been one of growth. This has been achieved through both organic and inorganic growth.
Organic growth is achieved from within a business. It can be from increasing sales of existing products and services, introducing new product lines or moving into new geographic markets. Inorganic growth occurs when a company grows by merging with or acquiring other businesses. Mergers and acquisitions are a much faster way of growing a company than organic growth. An example of inorganic growth is Tesco’s recent acquisition of the restaurant chain Giraffe. (BBC, 13th March 2013)
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