Mergers And Aquisitions

Mergers and Acquisitions Assignment Q1. What argon the characteristics of a victorious diversification dodging? persist: The main characteristics of a prospered diversification schema are: & poop;Platform of breathing Capabilities Any diversification schema should be based on the animated capabilities of the guild. This facilitates entry into the unfinished markets. The core compentancy of a confederacy are determined by the following characteristics: 1.It should be relevant across all the addition categories. 2.It should not be free to duplication by competitiors. 3.It should trine in significant pry addition to the consumer. & prick; excerption of the fittest of New Markets The markets earmarked for expansion should be growth markets with low motherhood periods. A small company cannot afford to travel in a market which has a long gestation period.

The speckless markets should offer ample opportunities for the companies to operate in a niche. •New Capabilities Though the strategy is based on existing capabilities, companies should acquire new ones to add the existing strengths. They could make an seeming motion to acquire new technologies, distribution channels or adding trade muscle. • focal point skills and Leadership Implementation of the strategy bequeath pray strong and scrappy management. The owner / manager may stand to take swift, fateful measures during the diversification effort. These could be decisions link to investment funds or downsizing. These decisions may be unsteady and face electric resistor from employees. Strong and visionary lead is required to ensure successful implementation. •Employee skills and productivity A practised and autonomous workforce is a must for the diversification strategy to succeed. Employees are more productive...If you expect to get a bounteous essay, order it on our website: Ordercustompaper.com

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