The University Of Lahore

Marketing Management

Assignment#3
SUBMITTED TO:
Mr. Akbar Bhatti

SUBMITTED BY:

Mountaha Butt

70076159

DEPARTMENT:

Management Sciences

BBA 4(A)

TOPIC:

What is the difference between organic and inorganic

growth?

DATE:

09-05-2021
Q#1: What is the difference between organic and inorganic
growth and examples?

Organic growth In-organic growth

Organic growth refers to the growth of Inorganic growth refers to the growth
internal revenues of a company, which of revenues of a company by
is a result of increase in internal output expansion, mergers and/or
of a company. Such type of growth acquisitions. Such growth can result in
lacks diversification of business risks. diversification of business risks.
When a company undergoes organic Inorganic growth the management of
growth, the management of that Two companies takes time to adapt
company is already trained and knows and adjust with the culture and norms
the strategies and procedures based of Each other.
on which the company is run
Organic Growth is cheap. This is Inorganic growth demands a massive
because it is generated internally and upfront cost, because whether it is a
the business gradually increases its merger or acquisition the parent
Span of activates. company has to incur costs in order to
buy interest in the target company.
The inorganic growth is a faster Inorganic growth demands a massive
method for a business to grow. The upfront cost, because whether it is a
main focus of this type of growth is to merger or acquisition the parent
obtain an inflated level of output and a company has to incur costs in order to
decreased level of costs. buy interest in the target company.
Some examples of businesses that The example is Disney & Pixar. The
have implemented successful organic merger of the legendary Walt Disney
growth strategies are Dominos UK, and Pixar was a match made in
Apple and Costa Coffee. cartoon heaven.