Are Mergers the most appropriate method of strategic growth in todays Essay

Are Mergers the most appropriate method of strategic growth in todays business environment - Essay Example This will be followed by an explanation of key terms namely: mergers, acquisitions, alliances and joint ventures. The main body of the paper will identify the issues and challenges of external methods of strategic growth as well as well as to attempt to establish how these relate to today’s business environment. According to BusinessDictionary (2013), strategic growth is growth aimed at winning larger market share even at the expense of short term earnings. There are four broad growth strategies namely product development, diversification, market penetration and product development. Campbell, Gaule & Morrison (2005) also suggest that â€Å"growth in profits can come from improving the profitability of the existing revenue stream, expanding existing businesses by gaining market share or extending into new markets or products, or entering one or more new businesses by acquisition, joint venture or greenfield investment.† On the other hand, Liabotis (2007) posits to the ef fect that growth strategy can be achieved through growing the core business, growing by sub-segmenting the customers as well as growing adjustment opportunities. As a point of departure, it is imperative to explain the meaning of key terms highlighted above. Weinberg and Blank (1979) â€Å"define merger as an arrangement whereby the assets of two companies become vested in or under the control of one company,† (as cited in Marimuthu, 2008, p. 8). On the other hand, an acquisition can be defined as any transaction where a buyer acquires the assets of the other company and eventually takes control of them (Scharf,1971 as cited in Marimuthu, 2008). A joint venture is a strategic alliance where two or more people or companies agree to contribute goods, services and or capital to a common commercial enterprise (Cook, 2010). The main advantage of joint ventures is related to access and sharing of resources among the partners which can also contribute to the joint ventures profitabi lity. However, this paper will specifically focus on mergers and acquisitions and their contribution to strategic business growth during the contemporary period. There are different reasons why mergers are carried out by different companies. The merging companies will be seeking to increase their market share since they may be joining operations with successful companies in the market. The other reason is that the merged companies may be seeking to gain the skills and expertise of the other employees from the other company as they will cross the floor when a major has taken place. Growth can be achieved through product development, diversification, market penetration or market development (Kotler, 2003). Ansoff suggests that the growth strategy of a company mainly depends on two variables, whether it is the desire to develop new products or new customers as shown in appendix 1. More customers for a specific product can contribute to an increase in the company’s market share. The major aim of various businesses is to attract customers who form the foundation of the organization. In order to attract new customers, there may also be need for developing the products so that they can appeal to a large number of the targeted customers. Product expansion is mainly concerned with keeping the same market of customers while at the same time trying to increase sales through offering more products (Kotler, 2004). This can be achieved through identification of the changes in the customers’

The Impact of Urban Industrialization on Early Twentieth-Century Art Research Paper

The Impact of Urban Industrialization on Early Twentieth-Century Art - Research Paper Example The two depictions of labourers through the work of Courbet and Manet are very different in scope and social setting. The labourers in the Courbet piece, The Stone Breakers (1848-1850) are labourers in the field, the reflection of his background as having been raised in a farming family evident in his depiction of labour. The Manet piece, Olympia (1863) shows a woman servant, her job doting on the subject of the piece and presenting a very different version of work. Where the labourers of Courbet are creating and achieving, the Manet piece reflects an indulgence and luxury. Manet’s family was financially wealthy, thus his exposure to servants may have been different than Courbet, although his family undoubtedly had them as well. Manet lived an urban life where Courbet lived a rural life during his youth. The French Revolution of 1848 was about to work and labour, thus allowing for the paintings to provide context for the political aesthetics and issues of the time period. Pari s was being built to reflect less of an indulgence and more of the socially relevant economic problems of the time, thus these paintings contribute to that discourse, even in the more indulgent nature of Manet’s work. In comparison to Caillebotte’s Floor Scapers (1875), the pieces are less activated, where Caillebotte’s view of labour was much more intensely positioned. The workers are engaged in hard labour, where the work of Courbet and Manet do not show this same activation. In discussing urban industrialization, the work of Umberto Boccioni and Ernst Ludwig Kirschner provides context for the changes that were being experienced at the turn of the 20th century.