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What Is The Difference Between Organic Growth and Acquisition?

Organic growth comes from internal resources and improving existing business operations, whereas acquisitions involve purchasing other businesses. A performance pay scheme ties employee compensation to company performance, incentivizing greater contributions. Mott MacDonald's values of progress, respect, integrity, drive, and excellence guide its socially and environmentally responsible activities and respect for local customs. A rolling five-year strategic plan helps Mott MacDonald identify projects by setting targets and evaluating proposals based on their alignment with objectives.

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257 views2 pages

What Is The Difference Between Organic Growth and Acquisition?

Organic growth comes from internal resources and improving existing business operations, whereas acquisitions involve purchasing other businesses. A performance pay scheme ties employee compensation to company performance, incentivizing greater contributions. Mott MacDonald's values of progress, respect, integrity, drive, and excellence guide its socially and environmentally responsible activities and respect for local customs. A rolling five-year strategic plan helps Mott MacDonald identify projects by setting targets and evaluating proposals based on their alignment with objectives.

Uploaded by

Wasi Ali
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. What is the difference between organic growth and acquisition?

Organic growth represents the true growth for the core of the company. It is a good indicator of how well management has used its internal resources to expand profits. Organic growth also identifies whether managers have used their skills to improve the business. The business in the case has grown organically by recruiting more staff in different fields. Whereas, acquisition is the element of growth that comes from buying or selling related or unrelated businesses in the industry.

2. What is meant by a performance pay scheme?

Mott MacDonald is an employee-owned company. This means that the employees can work and bring a difference in the organization. Moreover they are able to take part in performance pay scale, which is paying in accordance to the companys performance. Therefore the more employees contribute to the firms success, the more they benefit.

3. Analyze how Mott MacDonalds values influence its business activities.

An organizations values are the guiding principles that influence its activities. Values show how the organization expects everyone within the business to behave. The core values they depend on are PRIDE i.e. Progress, Respect, Integrity, Drive and Excellence.

Progress In progress their projects not only focus on their progress but on the communities as a whole. They tend to improve living standards and well-being of the planet. Respect As its a global firm henceforth they recruit staff from all over the world and one can say that they experience diversified workforce. The company and the employees respect the local customs and cultures of the countries it works in and encourages all staff to respect each other regardless of their background or origin.

Integrity: Mott MacDonald promotes ethical behaviour. This means that the company commits only those promises that they can truly deliver. Due to this they have numerous satisfied customers which turn to be the strength of the company. Drive: Drive involves exceeding expectation and aims for continuous improvement. Excellence: Mott MacDonald wants its activities to be associated with excellence and innovation.

Well all these values positively affect the business values.

4. Evaluate how a rolling five-year plan helps Mott MacDonald to identify which projects it will take on.

Mott MacDonald operates a rolling strategic plan that looks ahead over a five-year period and is updated every year. The five-year plan is an example of top down planning it sets targets and the direction for the companys business units. The five-year plan covers all areas of importance to the business. These include financial growth, markets, services, customers, partners, sustainability and staff development. While taking on any project, Mott MacDonalds experts need to ask themselves some of the key questions to ensure their objectives whether they are SMART or not.

S - What do we want to achieve? M- How will we know if it has achieved the right result? A- Do we have the right resources to carry this out? R- Does it address the problem? T- What is the deadline?

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