Topic 6 Flashcards
Strategy Formulation
1
Q
What are the 5 generic strategies?
A
- Broad Coast Leadership
- Focussed Cost Leadership
- Broad Diffferentiation
- Focussed Differentiation
- Best Cost
2
Q
A Merger is defined as:
A
a mutually agreed consolidation under joint ownership control of two or more previously independent entities
3
Q
An acquisition is defined as:
A
..the successful purchase of enough shares in another organisation to obtain decision making control over it. Generally 50.1% of shares
4
Q
What are the steps in an Acquisition?
A
- Identifying an acquisition target
- Valuation of the target
- Due diligence
- terms of payment
- negotiation of the final deal
- integration
