The upcoming discussion will update you about the difference between acquisition criteria and strategic approaches.
Difference between Acquisition Criteria and Strategic Approaches
Acquisition Criteria
1. Synergistic nature product/market.
2. Inefficiency in marketing structure and designs.
3. Poor motivation of management team.
4. Underutilization of manufacturing capacities.
5. Under-exploitation of trademarks, brand names and copyrights.
6. Under-utilisation of financial resources.
7. Portfolio of minority investments.
8. Under-skilled firm in a related field of business.
9. Under-valued corporate Portfolio.
10. Key international business markets.
Strategic Approaches by Acquirer
1. Attempt to ensure economies of scale in the functions of production and distribution.
2. Ascertain the basic weaknesses and overcome them through strong marketing network so as to achieve effectiveness. Adopt training courses wherever necessary.
3. Judge and weigh the motivation factors and incorporate tangible schemes to turn the situation.
4. Achieve additional sales growth by building up an effective marketing team.
5. Attempt to close the strategic gap by proper exploitation of under-utilised capacity. Study consumers, brand loyalty and apply vigorous action to improve.
6. Ascertain borrowing capacity or other financial strengths (e.g. unabsorbed tax losses) and use them to get immediate results.
7. Attempt vigorously to get improved short-term earnings and sales stock.
8. Use all possible/relevant strategies to improve competitive posture through superior production and marketing efforts.
9. Assess the extent and reallocate resources for up-gradation.
10. Attempt to ensure economies of scale in all key functions for global orientation in order to avail of strategies like exporting, foreign licensing, foreign joint ventures, or direct investments.