Evaluate the motives for takeovers and mergers and evaluate how they link with corporate strategy. (40 Marks) A corporate strategy is a plan based on the corporate aims and objectives which defines the overall scope and direction of the business by identifying its choice of business, markets and activities. Corporate strategies are also likely to involve a significant investment in terms of time and resources, which makes them difficult to change. There are three ways of achieving strategic development, and a company may use any combination to achieve its corporate aims and objectives. One of the three ways of achieving strategic development is via external growth.
A procedure can be build to help the managers and consultant at the customer interface achieve new insights into the customer’s requirements and favorites. Lastly, customer-focused strategy is to enter industry that has strong strategic relations to the core adjoining industries. This is a mainly tempting alternative when the core industry is moving toward its operating effectively, produce surplus cash for reinvestment and full capabilities. Therefore industries are most situated to this strategy because it creates relationship with the customers. The executive growth strategy- The three customer-focused growth strategies explains the need supporting infrastructure to raise the chance of victorious implementation.
Globalization is the key to survival that allow to a company to be competitive and offer diverse services and convenience to consumers. Benchmarking analysis that compares competitive companies with their process and performance metrics to industry requires a comprehensive research. In a successful business, effective tactical development inevitability to manage finance is essential. Financial management is a comprehensive tool that monitors and willpower to improve a company’s success. When I was conducting the research for financial statements, there were many interesting.
A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1). This will be a good move for Kudler to help expand their brand to different locations. They have already maintained the San Diego metropolitan area; therefore there are more markets to conquer as well. Also, maintaining control is important: In most cases, Venture Capital investors will want to appoint someone on their team as a member of the board of directors. Moreover, they usually
In this scenario the pro’s outweigh the con’s and therefore it would be a great idea to form a corporation. Choosing the proper formation to conduct business is crucial for an organization. Whether one believes that personal liability, limited liability, or double taxation will increase their chances of surviving in the business world each organization has the ability to choose a specific formation. Formations of a business are unique, some benefit some organizations more than others and so forth. However, in most cases if circumstances
What are the enabling and inhibiting factors facing the two firms as they pursue their goals? Do you think that either firm can attain a sustainable competitive advantage in this business? The enabling and inhibiting factors for each firm are numerous. Both companies chose to focus on customer satisfaction over anything else and to provide solutions to meet the needs of the consumer instead of forcing the consumers need to fit their solution. UPS was willing to compete on price, and
However, it has various issues in terms of its strategy to more to a less bureaucratic, more customer focused organization. Ultimately, their goal is maximize return on assets through profitable growth. Thus, the change in strategy has caused La Caja to recognize into four different divisions – financial, commercial, technology, and planning & control. Caja Espana employees were reward on their performance through promotions and determined by their qualification and seniority, but had a small variable that was variable on their performance. It goes into detail how the performance compensation was laid out.
For a company to retain talent it must offer more incentives for the employees than that of its competitors. Your company encourages the decisions and ideas of the employees but more programs could be put in place to help retain employees. Implementing a program that offers rewards for time and cost savings not only benefits the employee but also the company by projecting a positive image of employee worth to the company. Keeping the companies hiring practice on the national level is required for all employees that work in the retail stores but if there is a need for technology or manufacturing of a particular product I would recommend global labor. The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost.
In general, the payoff to the parent was strategic and typically involved either access to innovation or support for the viability of the parent’s business objectives. Still, profits are always nice to have, but not the only or main reason. 2. What is your assessment of Eli Lilly’s CVC program? Eli Lilly’s CVC program has been through three phases.
1. Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage? A strategy Mountain Bank should utilize if business-level strategy. Organizations using a differentiation strategy strive to produce goods and services that are somehow better than those produced by competitor. They usually strive to produce unique products and to offer exceptional service.