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(solved) Strategic Business Analysis

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Added on  2020-10-22

(solved) Strategic Business Analysis

   Added on 2020-10-22

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Strategic Business Analysis
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INTRODUCTIONMergers as well as acquisitions have been a very important source of expanding businesssince ages, companies around the world have taken this route to gain profitability as well as toventure into other field of businesses. Through M&A Companies around the world will be ableto do business in a more effective as well as efficient way. Merger is defined as The mix of atleast two organizations and an altogether new organization is framed, shares are traded for thosein new organization (Dutordoir, Roosenboom and Vasconcelos, 2014). Typically a concurredexchange. On the other Hand, An acquisition is a mix of two organizations where oneorganization loses its corporate presence and all advantages and liabilities are assumed controlby the procuring organization.MAIN BODYReasons for Merger and AcquisitionThere are various reasons for which an organisation may decide to amalgamate withanother firm, this may include growth as well as development of business, up gradation on thefront of research and development of company etc.Increase in Capacity Quickly: An organisation can increase the level of its current capacityquickly by Merging or acquiring with other organisation. This will raise their overall capacitylevel and hence higher business growth can be seen in the longer run.Economies of Scale: If a company decides to perform M&A, it will allow organisation to dobusiness on a larger scale, and thus it can achieve economies of scale, this means that whengoods and services are provided on a larger scale, the organisation is able to save on the front ofcost and thus results in higher level of profitability.Market Entry: Access to new geographic or item advertises e.g. passage to key worldwidemarkets or a 'foothold' in a developing business sector. When an organisation wants to enter intoa new market, it usually decides to either perform a joint venture with other firm or will mergeand acquire with other firms (Gupta, 2012). Business Growth: The level of business growth can be achieved. The organisation can achievemarket dominance through right kind of mergers and can have a larger overall market sharewithin the business. It is thus quite important to have a proper strategy of M&A for achievinggrowth and development with a quicker pace.1
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