Ong, Maxine Allain Z.

BSA 2-17 ASSESSMENT: CH 7

1. How can developing strategic partners contribute to an organization?

- It provides a various opportunity that can enhance once’s knowledge and skills which can
help employees build their new skills and competencies that is required for meeting
challenges in globalization and entering new markets for an intense competition. It allows
small business the ability to grow out their customer base and to improve their business
which can access new products and new market that can block a competitor and increase a
customer loyalty. It allows you to diversify the revenue without diversifying the core
offerings which could outweigh the drawbacks.

2. What is Mergers and Acquisitions in developing Strategic Partnership?

- A merger is the integration in separate entities into one new organization whereas the
acquisition is the takeover or the subsequent integration of one firm into another. It also
refers to the driving the idea behind a deal whereas motivation determine the types of deals
that they pursue which is most common objectives of M&A that can improve financial
performance and reducing risk. It shares cost and can also enhance learning skills that is
easier to manage and that is more successful than acquisitions. It is often used in strategies
for external growth which can take over another company by obtaining its properties to
compromise these companies to cooperate and pursue their goals.

3. Give one type of Mergers and Acquisitions and explain it in your own words.

- Conglomerate merger is one type of Mergers and Acquisitions that is focused when two
companies have a diverse geographical area within unrelated business activities to forma a
larger company. It is involved totally to unrelated business activities because it usually
occurs between the firms within different industries location in different locations. One
example of this is when Walt Disney company and an American broadcasting company
were held together as a conglomerate merger. It is a large company that is mainly composed
of smaller companies that is acquired over time.
4. Choose one Mergers financing method that you think would be more effective to an organization
and elaborate.

- Stock exchange can quickly raise affordable capital by issuing more shares for investors to
purchase and they can also raise shares to be used to help the company grow and pay for
different business costs. It can give new access to capital which can develop the business
and makes it easier for you and other investors to realize their investments. It provides the
company with the facility to raise capital for its expansion through selling shares and
investing to platform with these shares. It can improve the economic growth which can
provide a contribution to the stock market and can also improve the acquisition of
information to the organization.

5. What is outsourcing?

- It is the business practice of hiring a party outside a company that can perform such services
and create goods that can be performed in-house by the company’s own employees. It is
usually undertaken by companies as a cost-cutting measure. It is giving your work to
someone else outside of your main business that could be through freelancing which can
handle segments of your business-like manufacturing overseas. It can lower costs,
increased efficiency, provide access to skills and increase flexibility to the market.
Companies need to cut costs to stay in business which allow companies to do that.