Corporate strategy Assignment Example | Topics and Well Written Essays - 3000 words

Corporate strategy - Assignment Example The constant need to venture into new markets and the pressure to judiciously utilize resources drives businesses to shape their corporate strategies and business objectives accordingly. The marketplace drives corporate decision making with regard to mergers, acquisitions, spinoffs, reorganizations and closures. There could be a number of different factors that prompt businesses to enter into new markets and locations, expand operations and enter into new business relationships. These factors include fast paced changes in tools and technologies, shift in consumer behavior or encountering uncontrollable factors, such as natural calamities and wars. In this era of globalization, mergers and acquisitions is one of the widely used modes of business growth and expansion for several companies. A significant reason for this is that the similarity in competencies among companies competing in the same marketplace promotes the betterment of financial performance, enhance competitive advantage, take advantage of innovative business opportunities and make an entry into newer markets and locations. However, mergers and acquisitions do not assure the organization of growth, development and success. The fact remains that a merger or acquisition can yield positive results for the acquiring company only if it is able to successfully manage the acquired business and transform it to ensure that it is line with the long-term organizational objectives (Haspeslagh and Jemison, 1991). A key element in the merger/acquisition process is the selection of the correct business that will be acquired. This process of selection is critical to the success of the acquisition, and requires deliberation, discussion and effective decision making. The main reason why organizations enter into new partnerships is to take maximum advantage of opportunities, such as entry into new markets and geographical locations, better access to cutting