The following points highlight the eight major areas in which businesses should set objectives identified by Peter Drucker. Also we will learn about the need for balancing these multiple objectives. Area # 1. Market Standing: A business must set objectives concerning what share of the market it will try to capture. The best market share requires careful analysis of: (i) [...]
The following points highlight the ten major arguments in favour of acquisition as a strategic choice for a firm. The arguments are:- 1. Reduction of risk 2. Avoidance of profit slump 3. A means of entry into a new area 4. A means of obtaining cash 5. Welding together a fragmented industry 6. Removal of competition 7. Opportunity for synergy [...]
The upcoming discussion will update you about the difference between acquisition criteria and strategic approaches. Difference between Acquisition Criteria and Strategic Approaches Acquisition Criteria 1. Synergistic nature product/market. 2. Inefficiency in marketing structure and designs. 3. Poor motivation of management team. 4. Underutilization of manufacturing capacities. 5. Under-exploitation of trademarks, brand names and copyrights. 6. Under-utilisation of financial resources. 7. [...]