Issue 12: Does Expanding via Mergers and Acquisitions Make for Sound Corporate S

Question

Issue 12: Does Expanding via Mergers and Acquisitions Make for Sound Corporate Strategy? Discussion Question: Provide arguments as noted in your textbook material and any material you may have researched that (YES) a business strategy of expanding its business through mergers and/or acquisitions, IS a sound corporate strategy and/or (NO) a business strategy of expanding its business through mergers and/or acquisitions, IS NOT a sound corporate strategy, AND discuss examples to support your argument.

Explanation / Answer

The determined course of action through a specific way or technique is termed as strategy.business is an economic activity where the exchange of goods and services takes place between two or more people with a mutual gain of profit. in order to attain such profits a unique technique are followed by the business entrises which is termed as business strategy.A strategy can be sucesses or failure which corely depends on the poilicy implementation. Such strategies which are of service provoders is termed to be soucnd is of mergers and Acquitions.

Mergers and Acquictions are two measures which are used to dissolve the firms due any reason.Merger is a technique where two profit oriented firms combine into single firm whereas acquiction means a loss oriented firm is accquired inti profit oriented organisation.As both the mergers and accquctions are considered to be the sound business strategy because of the following reasons.

a. Both the firms exixts in the soiciety

b. No loss to exixsting employees of the organisaytion.

c. Proper delegation of authority And responsibilty is maintained .

d,.The company can be saved from liquidification.

e.The stratyegy maintains the brand nama and quality of the product.

For istance in order to protect it self from loss BHPV has bween merged into BHEL a frofit oriented organisation in the public sector untaking.

Thus these mergers and accquctions serves as a best sound strategy.

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