تشابترات الملف بارت ١ Flashcards
(36 cards)
What is Related diversification:
Related diversification: is a corporate-level strategy that is based on the goal of establishing a business unit in a new industry that is related to a company’s existing business units by:
Some form of commonality or linkage between value-chain functions of the existing and new business units.
What is Unrelated diversification:
Unrelated diversification: is a corporate-level strategy based on a multi business model with a goal to increase profitability through:
The use of general organizational competencies, and
Increase the performance of all the company’s business units.
What is Horizontal integration ?
Horizontal integration is a strategy of seeking ownership of or increased control over a firm’s competitors
Market power exists when a firm can:
Sell its products above the existing competitive level and/or Reduce the costs of its primary and support activities below the competitive level
What is the Horizontal Integration Guidelines
When an organization competes in a growing industry
When increased economies of scale provide major competitive advantages
Remember: monopoly is not allowed in many markets.
What is the meaning of merger ?
merger - is a transaction where two firms agree to integrate their operations on a relatively equal basis because they have resources and capabilities that together may create a stronger competitive advantage.
What is the meaning of An acquisition ?
acquisition - is a transaction where one firm buys a controlling or 100 percent interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio/group.
Whereas most mergers represent friendly agreements between the two firms, acquisitions sometimes can be classified as unfriendly takeovers.
What is the meaning of A takeover ?
A takeover - is an acquisition—and normally not a merger—where the target firm did not solicit/petition or ask the bid of the acquiring firm and often resists the acquisition (a hostile takeover).
What is the primary reason for acquisitions ?
enable firms to gain greater market power.
What is Horizontal Acquisition
when a competitor in the same industry is acquired, a firm has engaged in a horizontal acquisition. Horizontal acquisitions are often most effective when the acquiring firm integrates the acquired firm’s assets with its own assets.
تستحوذ على منافس
What is Vertical Acquisitions ?
has occurred when a firm acquires a supplier or distributor that is positioned either backward or forward in the firm’s cost/activity/value chain.
تستحوذ عبى احد بالفاليو تشين
What is Related Acquisitions
when a target firm in a highly related industry is acquired, the firm has made a related acquisition.
الاستحواذ على ذا الصله
Internal development of new products is often perceived by managers to be costly and represent high risk investments of firm resources.
T or F
True
The acquiring firm gains immediate market access.
T or F
True
What is the Problems in Achieving Successful acquisition?
Too large
Too much diversification
Integration difficulties - صعوبة الاندماج
Inadequate evaluation of target - عدم التقييم الكافي للهدف
عند تقييم المنشات التي تريد الاستحواذ عليها
Evaluation requires examining:
Financing of the intended transaction
Differences in culture between the firms
Tax consequences of the transaction
Actions necessary to meld the two workforces
What is Organizational structure specifies ?
الهيكل التنظيمي
the firm’s formal reporting relationships, procedures, controls, and authority and decision- making processes.
What is the Strategic vision?
Where is the company going? Where does the company ultimately want to be?
What is the Mission?
How do we want to accomplish our goals? Who are we now? What are we doing?
What is the Core Values?
Core values are the beliefs, ethical standards, and behavioral norms that personnel are expected to exhibit when pursuing the firm’s strategic vision and mission.
القيم الأساسية هي المعتقدات والمعايير الأخلاقية والمعايير السلوكية التي يتوقع من الموظفين إظهارها عند متابعة الرؤية الاستراتيجية للشركة ورسالتها.
The Strategy is always A work-in-progress?
T or F
True
There are many ways to evaluate mechanisms:
Give me tow of themاليات التقييم
1-The balanced scorecard
2- Corporate Governance
What is the balanced scorecard ?
It is Set of both financial and strategic objectives
A balanced scorecard approach gives managers a more complete view of overall performance rather than just looking at financial outcomes alone.
The Corporate Firm
In its simplest form, the corporation comprises three sets of distinct interests:
في أبسط أشكالها، تضم الشركة ثلاث مجموعات من المصالح المتميزة:
1-the shareholders (the owners).
2- the directors.
3- the corporation officers (the top management).
