![]() ![]() ![]() ![]() In such a case, it is the vertical merger that has taken place between the two organizations. For instance, organization A, which is involved in the manufacturing of certain products, merges with organization B, which sells the products of organization A. Refer to a merger between two or more organizations having different stages of business in the same industry.For example, an organization in computer hardware manufacturing may merge with the organization having the same business. Organizations may merge horizontally by sharing their resources and skills. The merger results in a larger organization and large-scale operations for the merged organization. Take place when two or more organizations in the same business activity merge.These are briefly explained in the following points: There are various types of mergers that help in expanding the size of organizations. The main reason behind mergers and acquisitions is the desire of organizations to increase their market power and gain synergy. In most of cases, acquisitions are unfriendly in nature as one organization tries to take over another organization by adopting hostile measures, which may not be in the interest of the acquired organization. Thus, in mergers, organizations pool their resources together to create competitive advantage.Īn acquisition refers to the process of gaining partial or full control of one organization by another. It is also referred as an agreement in which one organization obtains the assets and liabilities of the other in exchange for shares or cash. Mergers and acquisitions have become popular strategies in the last two decades to expand the scope of business for an organization.Ī merger can be defined as the combination of two or more organizations, in which both the organizations are dissolved and their assets and liabilities are combined to form a new business entity. Let’s discuss each of these strategies in detail. The cooperation strategies available to organizations are as follows: For example, if an organization works in cooperation with other organizations, it can establish a favorable position in the industry relative to its competitors. Joint venture advantages and disadvantagesĮxpansion through cooperation refers to the mutual cooperation between organizations belonging to the same industry to achieve a shared objective. ![]()
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