Strategic alliances are relationships between a number of parties to achieve pre-agreed goals such as to compete with bigger companies, while remaining separate businesses. They are examples of co-operation rather than competition.
Another way for businesses to expand is through mergers and acquisitions. They may be opportunistic or strategic. According to National Statistics during 2007 UK companies bought 441 companies abroad worth 57.8bn, foreign companies bought 269 companies in the UK worth 82.1bn and UK companies acquired 869companies in the UK worth 26.7bn. They are a way of gaining a controlling interest in a company in another country. Ultimate ownership might also stay in the country when the M & A involves companies from the same country. In hostile take-overs the bid is originally rejected or made without the board's knowledge. The bid is maintained if the company really wants the take-over to succeed. It may involve quietly buying shares on the open market or persuading the shareholders to replace the board. Financiers are less likely to back hostile take-overs. There may be grounds for tragedy when the causes are archetypal of worldliness, greed and injustice. The dignity of the human person demands freedom from coercion and those involved are bound in conscience. Good work is worthy of praise.
No comments:
Post a Comment