BUS 010 Lecture Notes - Lecture 17: Vertical Integration, Division Of Labour, Moe Williams
Document Summary
The performance effects of diversification and vertical integration depend on the mode by. Strategic maneuvering which these strategic moves are made. Choices besides outsourcing and vertical integration include: mergers & acquisitions, strategic alliances. Merging or acquiring another firm can provide required resources and capabilities. The principal difference between the two is the way in which the resulting ownership. Mergers & acquisitions interests are determined, the manner in which the arrangement is financed, and the implications it has on the management of each of the firms. Corporate cultural differences, and shareholder and management cooperation may prevent mergers and acquisitions from being effective. Strategic alliances allow firms to combine their resources and capabilities temporarily. Alliances allow for a sharing of risk and control and are commonly employed when one or. Strategic alliances both firms are seeking to either enter into a new product market or to enter a geographic market with an existing product.
