Century Business Services, Inc. (CBIZ)There are many means for an organization to utilize internal growth strategies. In comparing similar circumstances that occurred in the Lester scenario, Century Business Services, Inc. (CBIZ) not only changed direction of the organization, they moved into an entirely different industry. Until 1995, CBIZ existed as a solid and hazardous waste company. In 1995, CBIZ undertook a major overhaul of the organization's service offerings and began exploring the fields of diversified holdings, looking to the fields of electronic security, car rentals, and sales and in 1996 adding insurance to their portfolio. "Since becoming a provider of outsourced business services to small and medium-sized companies, the publicly traded, 5,000-employee company has grown phenomenally. It has gobbled up storefront business service providers at an incredible rate - about one per week - and now has more than 650 offices in 47 states" (Akron Beacon Journal, 1999).
In 1997, CBIZ recorded first quarter revenue in the amount of $23.7 million, one year later it recorded $66.6 million and in 1999, their first quarter recorded at $124.9 million. Further findings on the growth of CBIZ show, that since the redirection of the organization, they acquired 39 companies for $128 million in revenue in 1997, 68 companies for $255 million in 1998, and in the first quarter of 1999 they had acquired 9 more for $22 million in billings. This growth indicates that the internal growth strategy to leave waste management for diversified holdings has proven for this firm to increase the wealth for the stakeholders. We will now examine how external growth strategies can benefit an organization.
Hurley InternationalIn comparing the Lester scenario, Hurley International also recognized the need to expand their market structure. Rather than fighting an uphill battle, and reinventing their distribution process,