 Selecting the right growth mechanism: The choice between internal development, strategic alliances, and mergers & acquisitionsMarkus Kreutzer
A chapter in Balanced Growth, 2012, pp 77-94 from Springer Abstract: Abstract When seeking to realize growth strategies, firms have three choices: internal development, alliances, and mergers & acquisitions. How to choose between 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 mechanisms. Four sets of factors should be simultaneously considered to decide on when to make, ally, or buy: 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. Keywords: Growth Mechanism; Internal Development; Strategic Alliance; Growth Strategy; Harvard Business Review (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-642-24653-1_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-642-24653-1_6 Access Statistics for this chapter More chapters in Management for Professionals from Springer |
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