23.03.2023 - 17:49

What is the difference between organic and inorganic growth? How do large companies, like P&G, typically obtain the growth their investors desire; organically or inorganically?

What is the difference between organic and inorganic growth? How do large companies, like P&G, typically obtain the growth their investors desire; organically or inorganically?

Answers (1)
  • Bexanon
    April 5, 2023 в 05:12

    Organic growth refers to a company's expansion through increasing its output and sales internally, without relying on mergers or acquisitions. This type of growth can be achieved through increased marketing efforts, introducing new products, expanding into new markets, or improving operational efficiency. Organic growth typically takes longer to achieve, but it can lead to more sustainable and predictable results over the long term.

    In contrast, inorganic growth refers to a company's expansion through mergers, acquisitions, or strategic partnerships. This type of growth can be faster but often more unpredictable, as it involves integrating new businesses and cultures. Inorganic growth can be a useful strategy for companies looking to quickly expand their market share or enter new markets.

    Large companies, like P&G, may use a combination of organic and inorganic growth strategies to achieve the growth their investors desire. For example, P&G has used both approaches in the past. In recent years, P&G has focused on organic growth through new product development and increased marketing efforts. However, P&G has also made several acquisitions to expand its portfolio of brands, such as its acquisition of Gillette in 2005. Ultimately, the choice of growth strategy depends on a company's specific goals, resources, and market conditions.

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