Mergers And Aquisitions

Mergers and Acquisitions Assignment Q1. What argon the characteristics of a sure-fire diversification escapism? execute: The main characteristics of a successful diversification outline are: & poop;Platform of Existing Capabilities Any diversification strategy should be based on the animated capabilities of the company. This facilitates entryway into the unsanded markets. The core compentancy of a company are refractory by the fol haplessing characteristics: 1.It should be applicable across every(prenominal) the increase categories. 2.It should not be open to duplication by competitiors. 3.It should lead in significant value addition to the consumer. & whoreson; survival of the fittest of New Markets The markets earmarked for expansion should be growth markets with low maternity periods. A small company cannot afford to run low in a market which has a long gestation period.

The spick-and-span markets should offer ample opportunities for the companies to operate in a niche. & atomic number 29;New Capabilities Though the strategy is based on existing capabilities, companies should acquire new ones to augment the existing strengths. They could wee-wee an apparent motion to acquire new technologies, distribution impart or adding trade muscle. •Managem ent skills and Leadership murder of the st! rategy will pray strong and aggressive management. The possessor / manager whitethorn stand to take swift, decisive measures during the diversification effort. These could be decisions related to investment funds or downsizing. These decisions may be risky and face electric resistance from employees. pissed and visionary leadership is required to ensure successful implementation. •Employee skills and productivity A skilled and autonomous workforce is a must for the diversification strategy to succeed. Employees are more productive...If you look forward to to get a full essay, order it on our website: BestEssayCheap.com

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