战略管理课件英文版ChAcquisitionandRestructuringstrategies.pptVIP

* Problems With Acquisitions Diversified firms must process more information of greater diversity Scope created by diversification may cause managers to rely too much on financial rather than strategic controls to evaluate business units’ performances Acquisitions may become substitutes for innovation Too Much Diversification * Problems With Acquisitions Managers in target firms may operate in a state of virtual suspended animation during an acquisition Executives may become hesitant to make decisions with long-term consequences until negotiations have been completed Acquisition process can create a short-term perspective and a greater aversion to risk among top-level executives in a target firm Managers Overly Focused on Acquisitions * Problems With Acquisitions Additional costs may exceed the benefits of the economies of scale and additional market power Larger size may lead to more bureaucratic controls Formalized controls often lead to relatively rigid and standardized managerial behavior Firm may produce less innovation Too Large * Restructuring Activities Downsizing Wholesale reduction of employees Downscoping Selectively divesting or closing non-core businesses Leveraged Buyout (LBO) A party buys a firm’s entire assets in order to take the firm private. * Lower performance Higher performance Higher risk Loss of human capital Restructuring and Outcomes Emphasis on strategic controls High debt costs Reduced debt costs Reduced labor costs Downsizing Downscoping Leveraged buyout ?2003 Southwestern Publishing Company * Acquisition and Restructuring Strategies Chapter 7 * Strategy Implementation Chapter 11 Organizational Structure and Controls Chapter 10 Corporate Governance Chapter 12 Strategic Leadership Strategy Formulation Strategic Competitiveness Above-Average Returns Strategic Intent Strategic Mission Chapter 2 The External Environment Chapter 3 The Internal Environment The Strategic Management Process Feedback Strategic Inputs Strategic Actions Strat