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What is Industry and Competitive Analysis ?

Introduction of Industry and Competitive Analysis Several environmental factors influence organisations. It is up to managers to ensure that this influence used positively, leading to organisational success. For the firm to make a profit, it must create value for customers or buyers. Hence, the firm needs to understand its customers. While creating value, the firm has to obtain goods and services from suppliers. So, it must value its suppliers and form enduring business relationships with them. While creating value for its hovers, the firm must closely look at the rivals who are there in the arena competing for the same 'space'. Hence, the firm must understand the competition. Thus, buyers, suppliers and competitors form the substance of a firm's industry environment. Forces from the industry environment directly affect the firm, and the amount of influence the firm has over its industry is dependent on the dominance of its competitive position. Most strategic m...

What is Demerger ?

Introductions Demerger  Demerger or Spin-off refers to a business strategy where a company particularly the larger company is divided or split into two or more units i.e., into the number of small units operating separately. The objective of all smaller units is the same. Thus, the shares are individually sold to the public. Generally, demerger is done so that each of the units can perform its business efficiently by focusing on the specific task which will contribute to the easy achievement of the objectives.  In order to sell the subsidiaries and smaller units of the company, the demerger is adopted. The main objective of the demerger is to divide a company into various units for achieving the specialization in a particular segment. Demerger or spin-off is just the reverse strategy of merger which implies the strategy to join the number of companies so that the firms intend to work together under the same roof.  Alternatively, the demerger is the opposite of 'u...

What is Strategy?

The term strategy entered the business world from military services where it was originally used. The strategy works as a blueprint of an organisation that defines its vision, mission, and also helps in determining the future course of action. The strategy helps an organisation to minimise the strengths of competitors by maximising its own strengths. The strategy is formulated to achieve current goals of an enterprise by optimum allocation and utilisation of internal resources and by collaborating different organisational pursuits. Strategy tries to achieve synergy and balance between objectives, resources and concepts to maximise the possibility of success and fruitful results. In wider terms, strategy refers to determining the fundamental longterm organisational goals and at the same time developing plans, acquiring, allocating and deploying resources to achieve those goals. The purpose of formulating strategy is to bring consistency and alignment in the activities of an organi...

Failure, Reasons and Values

Ways to Measure the Success of Merger and Acquisition The ways to measure the success of merger and acquisition are as follow:- Achieving Strategic Goals and Objectives:- The first measure of success is the degree to which the merger has moved the combined firm towards achieving its strategic goals and objectives. It is important to understand that merger is not a strategy, but a means of implementing strategy. This difference is critical. A firm's strategy must be driven by clients and practices. The likelihood of a successful merger is higher when firms have identified and agreed upon their long-range business goals and the steps necessary to achieve them. Each firm should be able to articulate why merger will help them to achieve their long-term vision and improve on their ability to serve clients. Economic Factors:- The second type of merger success measures are economic ones, which are the most difficult to define. The corporate Return on Investment (ROI) measur...

What is Corporate Restructuring ?

The terms “corporate restructuring' refers to the complete process in which the company combines its business operations and increase its positions for attaining the predetermined goals, stay in the competition and earn more profits. The basic goal of corporate restructuring is to manage the business operations in an effective, efficient and competitive manner for increasing the market share, brand power and synergies of the organization. It consists of significant re-orientation, reorganization or realignment of assets and liabilities of the organization through conscious management actions with the objective of drastically altering the quality and quantity of the future cash flow streams. In the present situation, the joint ventures, alliances, mergers, amalgamations and takeover is the simple and fast way of increasing ability and obtaining a large number of market share. Reasons for Corporate Restructuring  The companies have to open new export houses in order to s...

What is Acquisitions?

An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a  target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. Acquisitions, which are very common in business, may occur with the target company's approval, or in spite of its disapproval.  The acquiring company buys the shares or the assets of the target company, which gives the acquiring company the power to make decisions concerning the acquired assets without needing the approval of  shareholders  from the target company. Types of Acquisitions There are various takeovers according to the type of acquiring a business and the business being acquired and also the method required for acquiring business to purchase the other. The various types of acquisition are as follows: ...