Question

regarding organizational strategies, Are there any similarities between international, merger and acquisition, and cooperative strategies? explain

Answer 1

Organization Strategies:-

Organizational strategies are the corporate strategies actioned in order to achieve the missions & visions of the organizations. There are numerous strategies, developing such, can examine & implement effective systems that can work together for using resources, processes & employees in a better way. These strategies can use operational activities which can lead to corporate decisions & create an efficient management team.

International:- This is a condition wherein commercial transactions take place between entities of same organization but in different regions/countries. This strategy refers to action of plans of firms rather than governments. Main concern here is methods of doing business in different countries can vary due to changes in cultural, political & legal aspects. International trade is to taken care, as it is a key for commercial success.

Merger & acquisition:- Merger refers to when 2 organizations, usually working in same field, of same size agree to go ahead and work as one, new company rather than working separately. This is usually for the benefits of both the organizations seeking financial, operational advantages. Acquisition is situation in which a stronger & stable form acquires another firm & the existence of the latter diminishes. The smaller firm may absorb into the parent organization or would act as a subsidiary of the same. The usual reasons being this strategy are:- cost reductions; Increasing finances; wider base of products/ services; risks are diversified; market dominance of the parent firm;

Cooperative:- Cooperative strategy is a condition wherein 2 or more firms/parties form an ally in order to meet certain benefits from the cooperation. This type of strategy is objective based; all the mutually united parties come up for alliance for similar agendas to be met. Goals & critical business needs are discussed & then mutually agreed by all the partners. In due course of time, there could be alliance of resources, products, services, capital, knowledge, technology etc. in order to meet the shared objective. Benefits of cooperative strategy are:- sharing of best knowledge, resources, technology; Learning increase multifold; credibility increases with existing customer;

All the strategies briefly explained above do share a few similarities which are:-

1. Main objective remains same which is to increase revenue;
2. Diversifying the risk;
3. Smooth transactions;
4. Customer focusing.