merger: t wo firms combine to form a single new organization
DESCRIPTION
External Growth Strategies. C ( a+b ). Merger: T wo firms combine to form a single new organization Takeover : One firm buys a controlling interest in another Strategic Alliance: Two firms work together in a business venture but remain independent firms - PowerPoint PPT PresentationTRANSCRIPT
Merger: Two firms combine to form a single new organization
Takeover: One firm buys a controlling interest in another
Strategic Alliance: Two firms work together in a business venture but remain independent firms
Joint Venture: A strategic alliance, but within a separate legal entity formed by the participating companies
Franchise: One company (franchisor) allows another company (franchisee) to use its name, brand, products, etc. in return for a license fee and royalties
External Growth Strategies
A BC
(a+b)
A BA
B
A B
A BJV
A B
Franchise
A has some control over procedures, quality, advertising, etc., but no ownership of Franchise.