Baby Bottle Tooth Decay - Research Paper Example

The first advantage associated with acquisition is the undeniably, outright growth of an existing business. For instance if company A buys company B, the size of company A now becomes A+B, which means that there become an outright growth. This outright growth caters for the possibilities associated with starting a business and failing. It also caters for other basic company routines such as recruitment, placement and orientation; some of which do not always end well. Leading on from the first advantage, acquisition ensures that the buyer enjoys a ready-made organizational structure, system and culture.

In business, there is no denying the fact that establishing an organization may not be as difficult as establishing or setting up a organizational structure, system or culture. Gourley notes that “organizational culture is defined as the shared values, norms and expectations that govern the way people approach their work and interact with each other.” This explains the extent to which organizational culture could be difficult for most businesses that are started from the scratch. Buying a company therefore saves an entrepreneur from the hassle of getting a new organizational culture in place.

The very last advantage has to do with the inheritance of corporate publicity. Corporate publicity simply refers to the kind of popularity a company has in the eyes of consumers and buyers. These days, most investors target well established and publicized companies when they are buying. This makes it possible for them to inherit the popularity of the existing company. It also makes money voted into publicity very minimal. The best part of inheriting corporate popularity is the inheritance of customers.

Customers are the lifeline of every company. It is their inputs that make up the revenues for companies. Building a strong customer base is however very difficult to do. When a person buys an existing company however, he automatically have the customers of the