Selecting the right growth mechanism : The choice between internal development, strategic alliances, and mergers & acquisitions
Series
Management for professionals/ Tagungsband zum DocNet Management Symposium an der Universität St. Gallen
ISBN
978-3-642-24652-4
Type
book section
Date Issued
2012
Author(s)
Abstract
When seeking to realize growth strategies, firms have three choices: internal development, alliances, and mergers & acquisitions. However, how to choose be-tween these growth mechanisms is, however, not well-understood in practice. Managers seldom sufficiently strategically analyze this critical first step in any growth-related decision process. Instead, many managers commonly base their decision on "gut-feel" or simply follow successful traits. This chapter offers a framework to systematically guide managers in their choice of growth mecha-nisms. Four sets of factors should be simultaneously considered to decide on when to make, buy, or ally: the environment, the target, the growth strategy, and company-related factors. By systematically analyzing each growth mechanism's context-specific advantages and disadvantages, firms may avoid mistakes that could not be compensated for in later implementation phases.
Language
English
Keywords
growth
growth mechanism
alliance
partnership
strategic alliance
M&A
organic growth
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
No
Book title
Balanced Growth : Finding Strategies for Sustainable Development
Publisher
Springer
Publisher place
Berlin
Number
Bd. 9
Start page
77
End page
94
Pages
18
Subject(s)
Division(s)
Eprints ID
206038