Wipro in India is an example of a company that growth via acquisition. Over the years, Wipro has acquired the biggest call centre in India and a Financial Data Management company in US.
On the other hand, Infosys is a company that adopted an organic growth strategy in India. Infosys hardly acquired any company other than it acquired an IT company in Australia. The company preferred it cash reserve remain in bank and growth on it own rather than growth via Merger and Acquisition(M&A).
In Malaysia, Berjaya Group is view as a company that growth via M&A. Genting Group claim itself to be a company that preferred organic growth but the company involve in hostile takeover also when it acquired it plantation group, now under Asiatic Development Bhd.
Kuok Brothers Group, the richest man in Malaysia, also claim that they preferred organic growth. The company bought a land and plant and palm oil on the land rather than take over an exiting company when they want to diversified to oil palm plantation.
However, the company recently invest in two company listed on Bursa Malaysia. One is Transmile Group. Thus , usually most company adopt combination of the two strategy rather limit itself to single strategy .
In US, Computer Associates is the company that growth via aggressive M&A. While Bloomberg is the company that want to build everything themselves. Two company also started from 5 employee initially and growth to multi-million business now. Both company also have the policy to provide breakfast to it staff. Even staff number has growth from 5 person to multi country now.
Different type of strategy required different type of management.
A company that adopt organic growth strategy usually head by a sales or marketing people. Or a technical people like Engineer if it is in software industry.
Company that using growth via Merger & Acquisition usually used Accountant, Corporate Finance specialist or Merchant Banker as their CEO.
Does you company have the correct type of CEO?
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