The Betapharm Acquisition : DRL's inorganic growth strategy in Europe

 

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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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