StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - "Are Mergers the most appropriate method of strategic growth in todays business environment?"

Only on StudentShare
Pages 10 (2510 words)
In today’s business environment, it can be argued that mergers are the most appropriate method of strategic growth. The current business environment is dynamic hence it may be wise for companies to merge their operations in order to gain a large market share if the other company is poorly performing…

Extract of sample

This will be followed by an explanation of key terms namely: mergers, acquisitions, alliances and joint ventures. The main body of the paper will identify the issues and challenges of external methods of strategic growth as well as well as to attempt to establish how these relate to today’s business environment. According to BusinessDictionary (2013), strategic growth is growth aimed at winning larger market share even at the expense of short term earnings. There are four broad growth strategies namely product development, diversification, market penetration and product development. Campbell, Gaule & Morrison (2005) also suggest that “growth in profits can come from improving the profitability of the existing revenue stream, expanding existing businesses by gaining market share or extending into new markets or products, or entering one or more new businesses by acquisition, joint venture or greenfield investment.” On the other hand, Liabotis (2007) posits to the effect that growth strategy can be achieved through growing the core business, growing by sub-segmenting the customers as well as growing adjustment opportunities. As a point of departure, it is imperative to explain the meaning of key terms highlighted above. ...
Download paper
Not exactly what you need?

Related papers

Similarly, a fall in the price of a particular item shows a rise in the demand for that item. On a graph, a fall in price will show an inward shift of demand curve and a rise in the prices will show an outward shift of the demand curve. The diagram below shows a fall in demand due to a price rise. Figure 2 Shift in Demand – This happens when the demand of a particular item rises or falls due to…
6 pages (1506 words)
Identify the Most Appropriate form of Market Research in a Given Situation and Implement that Research
One of the main reasons that were understood in this connection is the happening of economic recession for which many social activities of the people countered a sharp decline. Further it was found that owing to the rise of the economic recession the main consumer segment that was increasingly affected constitutes the premium segment of consumers. Brand Heineken in this context reflects as have…
8 pages (2008 words)
Identify the most Appropriate form of Market Research in a Given Situation and Implement that Research
This report is concerned with the finding of the appropriate form of market research for the new integrated marketing campaign strategy for a more effective understanding of the consumer who plays as the heart of the 360 marketing approach. Understanding the customer need and investing in the appropriate techniques of communication for better relationship with customer is the most important aspect…
8 pages (2008 words)
Summarise the strategic options that are appropriate to ZARA and make definitive for ZARA to sustain its future position in the
This difficulty of the imitation is one of the foundations the leadership strategy relies on. Zara has managed to successfully exploit its economic of scale through its size and volume of production. Passemard observes that there is a relationship between firm-size measured in terms of volume of production. Based on this understanding, and considering that Zara sells medium quality fashion…
4 pages (1004 words)
Global Business Environment
However, the U.S banking Industry is faced with some limitations like the 2008 global economic crisis, whose effects are still limiting the industry’s capabilities. Financial crisis as one of the major limitations in the current U.S banking industry can be defined insufficient finances to run ensure banking obligations. It comes in different types, currency crises, implies insufficient currency…
6 pages (1506 words)
Global Business Environment
Nevertheless, all problems are being blamed upon the increasing number of imports into South Africa. According to a report for University of East Anglia in Britain, Chinese products into South Africa have cost them seventy seven thousand jobs for the last one decade. Besides, these Chinese imports are leading to slow industrial production, whereby it grew by fourteen percent from 2001 to 2010;…
3 pages (753 words)
International Business Environment Assenment
The company has maintained at a stable growth of just below 8% in terms of currency revenue and over 5% organic revenue growth. The company has also witnessed a stable profit growth over the past years and last year the company recorded a 9% increase in the operating profit growth margin. Consequently, other business branches in places like North America are performing exceptionally well and are…
14 pages (3514 words)