Growth can be achieved by different means. One approach is form within and another is from outside –that is combinations.
Corporate Growth Strategies
Growth can be achieved by different means. One
approach is form within and another is from outside –that is combinations.
Different forms of combinations are:
Amalgamation/Merger Merger
take place when there is a combination of two or more organizations.
Merger does create a new corporation.
Acquisition/takeovers One
Company acquires another company’s controlling interest. The acquired
company operates as a separate division or subsidiary by offering cash or
securities in exchange for majority of shares of another company.
Sales of Assets A company
can sell its assets to another and cease to exist.
Holding company acquisition This is a
quasi merger. Either the total or majority of a firm’s stock will
be acquired. The purpose is only management and control of other.
Tags : Strategic Management - Strategy Formulation
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