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From course:

Industrial Strategy 2022

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Question:

What are the 4 corporate growth methods?

Author: Hjalmer Pedersen



Answer:

1. Organic growth: when a firm builds on and develops its own capabilities over time. 2. Strategic alliance: where two or more firms agree to share resources and activities, and/or to pursue a common strategy. 3. Merger: when two firms agree to become one entity on a relatively equal basis. 4. Acquisition: when an acquirer takes control by purchasing a target company (via the stock market for a listed company) or a controlling interest in another, with the intent of making the acquired firm a subsidiary business within its own portfolio. (Can be ‘hostile’ i.e.the target did not solicit the bid)


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