Comparison Between Different External Strategic Growth Methods

Introduction During the late 1990s, the world experienced the fifth great merger movement, which lasted for over 5 years and involved almost completely industries, even all countries (B true(a)ey, Myers & Allen, 2008). And the number of initiative alliances increased at the same time. It can be seen that these two strategicalal ripening methods has become the main choices for global companies. Both of them be fit to help companies achieve some strategic objectives, such as economies of scale, market share maturement and obtaining strategic resources. However, when implementing these two methods, companies are required to distinguish their different characteristics and emphases. Moreover, compared with other growth methods, they defend their own features and merits, which make them highly competitive. But in the real world, when companies are making decides about external expansion strategy, they may be confused about their choices. Which strategy will be the right answer - faster and more direct single or more flexible one, which is intimately connected with their in store(predicate)? To a company, if merger and acquisition is proved to be wrong, the enterprise has to suffer from slowing their pace to get down access to resources; otherwise, this condescension will be more risky (Bleeke & Ernst, 1995).

Therefore, it is crucial for companies to have attention to subtle differences between merger and acquisition and strategic alliance when undergoing a strategic decision-making. In this essay, I would corresponding to start from basic definitions and some characteristics of mergers and acquisitions and strategic alliances to distinguish them, and then, instance their own problems. In addition, their relationship with the stage of business growth will be briefly explained. 1. M & A and strategic alliance 1.1 The concept of M&A and strategic alliance Johnson, Scholes and Whittington (2009) says that An acquisition is where an placement takes ownership of another organization, whereas a merger implies... If you want to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!