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Ally or Acquire - Strategic Management

Arjun Yadav
Arjun Yadav

A guide to help you decide weather to ally with another company or to acquire it in order to obtain long-term growth for you business.

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By Arjun Yadav IIM Indore, Mumbai
STRATEGY RESOURCE ALLOCATION MAKE BUY CRITICALITY A strategy to decide weather to go for a merger or acquisition starts with the understanding of the Resources a firm requires. Based on the criticality of the resource, the company can decide weather to make the resource in-house or to buy it from an external source.
BUY CONTRACT / MARKET JV&SA / M&A RELIABILITY If the decision is to buy resources, the firm can either buy it directly from the market if the reliability is high. In case the reliability of the resource in the market is low, the firm can consider a merger or a joint partnership.
MERGER / JV MERGERS & ACQUISITIONS JOINT PARTNERSHIP AUTHORITY When the question of either acquiring or allying arises, the decision makers develop a strategy based on their interest in the level of authority they desire in the other company. If high level of authority is sought, then the company goes for an acquisition or a merger. If the company desires low control, it can look for a joint venture or a strategic alliance.
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Ally or Acquire - Strategic Management

  • 1. By Arjun Yadav IIM Indore, Mumbai
  • 2. STRATEGY RESOURCE ALLOCATION MAKE BUY CRITICALITY A strategy to decide weather to go for a merger or acquisition starts with the understanding of the Resources a firm requires. Based on the criticality of the resource, the company can decide weather to make the resource in-house or to buy it from an external source.
  • 3. BUY CONTRACT / MARKET JV&SA / M&A RELIABILITY If the decision is to buy resources, the firm can either buy it directly from the market if the reliability is high. In case the reliability of the resource in the market is low, the firm can consider a merger or a joint partnership.
  • 4. MERGER / JV MERGERS & ACQUISITIONS JOINT PARTNERSHIP AUTHORITY When the question of either acquiring or allying arises, the decision makers develop a strategy based on their interest in the level of authority they desire in the other company. If high level of authority is sought, then the company goes for an acquisition or a merger. If the company desires low control, it can look for a joint venture or a strategic alliance.