1. Describe the primary reasons a firm pursues increased diversification. 2. Identify and explain the seven reasons firm sang a genial Acquisition Strategy. 3. What
1. Describe the primary reasons a firm pursues increased diversification.
2. Identify and explain the seven reasons firm sang a genial Acquisition Strategy.
3. What are the three essential benefits of international strategies?
4. Identify the competitive risks associated with cooperative strategies.
5. Briefly compare and contrast corporate governance in the United States, Germany, and Japan, and China.
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1 Firstly organizations seek increased diversification for many reasons that can easily be divided into two broad groups The first group delves on the specific motives to develop strategic competitiveness to pursue diversification The rationale for diversification is because of the urge to achieve economies of scale through involvement in shareable activities and the transfer of the core competencies concerning the profitability of the firm Besides the other reason is that there is need to value market power motives through the proper integration of multipoint competition Pursuing diversification influences firms to improve their efficiency of capital allocation through the use of a restructured portfolio of business In the second group reasons such as the avoidance of violations emanating specifically from antitrust regulations taking advantage of the reduction in tax levies and incentives exploiting tangible or intangible resources and the overcoming of low performance makes companies pursue diversification 2 Notably the first reason why firms implement acquisition strategy is to increase market share Organizations do so through innovations that result in strengthening clients relationship Ideally a firms market share refers to the portion of the market share it controls Secondly firms use acquisition strategies to overcome entry barriers In such a way firms achieve to offset the prevalence of barriers acting setbacks in the performance of the business in the competitive ...
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Authors: George Belch, Michael Belch
10th Edition
78028973, 978-0078028977
