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. [...]
Michael Hammer and James champy defined BPR as "the FUNDAMENTAL rethinking and RADICAL redesign of the business PROCESS to achieve DRAMATIC improvement in the critical contemporary measures of performance such as costs, quality, service, and speed." This definition contains the four key words: Fundamental: Why do we do what we do? Why do we do it that way? Radical: Signifies [...]