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01. The beta
pharm Acquisition: DRL’s Inorganic Growth Strategy in Europe a. Many experts
believed that it was difficult for Dr. Reddy’s Laboratories Limited (DRL) to establish
a strong marketing infrastructure and get instant access to German market through
organic growth. Discuss in general the various advantages and disadvantages of adopting
organic and inorganic growth strategies in organizations. Also, justify the inorganic
growth strategy adopted by DRL in Europe.
Answer: Organic and Inorganic Growth in
Business
Organic business growth can be described as the growth of natural
systems and organisms, societies and economies, as a dynamic organizational
process, that for business expansion is marked by increased output,
customer base expansion, or new product development, as opposed to mergers and acquisitions, which is inorganic
growth. For businesses organic growth typically excludes the impact
of foreign exchange. "Core growth"
is the term that is used to refer to growth that includes foreign exchange, but
excludes divestitures and acquisitions. At the point when we start
an independent company, we should zero in on developing our client base,
reinvesting benefits in new resources for more noteworthy pay, and improving
profitability to build our main concern. These endeavors are instances of organic
growth............................
Justification
for Inorganic growth strategy adopted by DRL in Europe.
In reference to the current case we can
appropriately analyses that DRL’s inorganic growth strategy in Europe and the
Betapharm acquisition in reference to the same was quite justified. The
justification can be elaborated on the following grounds.
·
First the lucrative German market.
·
Second the position of Betapharm in German Market
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