It is of two types:- Concentric and Conglomerate Merger - In merger two firms, agree to move ahead and exist as a single new company. Merger can be merger of equals : both companies are of equal sizes. merger of unequal's : large company merge with smaller one Acquisition - Acquisition is a deal when one company takes over another company and buyer becomes sole proprietor. In legal terms, the target company ceases to survive. The buyer swallows the company and the buyer's stock continues to be traded. Unlike mergers which are friendly, acquisitions can be friendly or hostile. A joint venture is an entity created when two or more firms pool Ventures - a portion of their resources to create a separate, jointly owned organization. All involved will have an equity stake in the new venture. It is a legal partnership between two(or more) companies where in they both make a new (third) entity for competitive advantage. Unlike mergers and acquisitions, in joint venture the parent companies does not cease to exist. Strategic Alliance - A Strategic Alliance is a formal relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. A business growth strategy starts with market insights. The source of insights lies within and across your market ecosystem. research firms and strategic marketing consultants can bring these insights to bear on an ad-hoc basis, companies committed to growth will serve themselves well by developing systems and processes to ensure a continuous flow of market insights into their business. This is a key strategy for developing the demand side of your business STABILITY OR CONSOLIDATION STRATEGY A firm following stability strategy maintains its current business and product portfolios; maintains the existing of effort; and is satisfied with incremental growth. It focuses on fine-tuning its business operations and improving functional efficiencies through better deployment of resources. In other words, a firm is said to follow stability/ consolidation strategy if: It decides to serve the same markets with the same products;
It is of two types:- Concentric and Conglomerate Merger - In merger two firms, agree to move ahead and exist as a single new company. Merger can be merger of equals : both companies are of equal sizes. merger of unequal's : large company merge with smaller one Acquisition - Acquisition is a deal when one company takes over another company and buyer becomes sole proprietor. In legal terms, the target company ceases to survive. The buyer swallows the company and the buyer's stock continues to be traded. Unlike mergers which are friendly, acquisitions can be friendly or hostile. Ventures - A joint venture is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization. All involved will have an equity stake in the new venture. It is a legal partnership between two(or more) companies where in they both make a new (third) entity for competitive advantage. Unlike mergers and acquisitions, in joint venture the parent companies does not cease to exist. Strategic Alliance - A Strategic Alliance is a formal relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. A business growth strategy starts with market insights. The source of insights lies within and across your market ecosystem. research firms and strategic marketing consultants can bring these insights to bear on an ad-hoc basis, companies committed to growth will serve themselves well by developing systems and processes to ensure a continuous flow of market insights into their business. This is a key strategy for developing the demand side of your business STABILITY OR CONSOLIDATION STRATEGY A firm following stability strategy maintains its current business and product portfolios; maintains the existing of effort; and is satisfied with incremental growth. It focuses on fine-tuning its business operations and improving functional efficiencies through better deployment of resources. In other words, a firm is said to follow stability/ consolidation strategy if: It decides to serve the same markets with the same products;
MS-206%20SM%202013.docx