Organic Growth

In the last decades, mergers and acquisitions has been the main strategy that enterprises follow to achieve their growth and development. However, many enterprises that have pursued growth development through mergers and acquisitions have not been rewarded. Entrepreneurs are becoming more aware that mergers and acquisitions is not the right path to follow. Instead, organic growth strategy is now the key to sustainable development. The stories of organic growth of SYSCO Corporation and United Parcel Service Inc. are perfect examples of successfully adopting organic development strategy.

SYSCO Corporation is one of the largest distributors of food and related products in the United States. SYSCO Corporation is headquartered in the Energy Corridor district of Houston, Texas. The company is involved in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses. The company sells more than 300,000 products to more than 400,000 customers and everyday more than 4 million cases of food and related foodservice products are being delivered to 360,000 customers through 157 separate profit centers which employ in total about 46,000 employees (Marketline, 2012).

United Parcel Service

English: A United Parcel Service Van (package car ...

UPS MD-11F cargo aircraft

Despite doing in a low-margin industry, SYSCO's economic performance is spectacular. (Edward D. H., 2009) indicated that SYSCO's annual sales growth has outstripped other competitors in the foodservice industry by two to three times. Since its inception, SYSCO has continually brought dividends and has boosted quarterly cash dividends thirty six times in thirty five years. The main reason for the impressive accomplishment of SYSCO Corporation is that since the advent of the company SYSCO has pursued an evolutionary organic growth strategy. As follow the right path, it has led to a steady growth on more than 30 years of the company.

United Parcel Service Inc., typically referred to by the acronym UPS, is an...