You are on page 1of 2

1.

What three strategies defined in the Chapter 5 do you  believe Tuguegarao City's small
enterprises employed the most? 

Cost leadership- this help to promote the availability of capital resources. Although the cost of
retail goods is low, it is possible to retain higher capital only because of higher margins from each
transaction. If every such product gives a higher margin then, over time, it can be used for
multiple purposes.

- Differentiation involves making your products or services different from and more attractive
than those of your competitors.

-Focusthis helps companies that use Focus strategies concentrate on particular niche markets and,
by understanding the dynamics of that market and the unique needs of customers within it,
develop uniquely low-cost or well-specified products for the market.

2. List and explain four major reasons why many mergers and acquisition fail.

-Lack of a strategic plan

A good ‘why’ is an essential component of all successful M&A transactions. That is, without a
good motive for a transaction, it’s doomed to failure from the outset.

-Overextending resources

‘Bolt on’ mergers and acquisitions - that is, target companies which are small in size relative to the
acquiring company - are usually considered to be the best type of transactions.

-Lack of management involvement

The most obvious reason for failure is left till last. Management involvement is something of a
catch-all answer and often incorporates many of the other reasons on this list.

-Losing the focus on the desired objectives, failure to devise a concrete plan with suitable control,
and lack of establishing necessary integration processes can lead to the failure of any M&A deal.

3. Should non-profit organization disclose their strategic plans on their websites? What about
businesses? Why?
-In business setting, strategic plan should not be disclose or must kept it privately within your
company only because firs of all that will serve as your guide in every single day of your
operations on how will you gain competitive advantage to your rivals.

4. Why can't businesses use a combination of the strategies in Chapter 5?

-We cant combine all the strategies as one. Because it will be too risky and it can be the downfall
of a certain business.

5. When is it appropriate for a company to diversity? What are the most common reasons for
businesses to diversity, and why do they do so?

-Diversification strategy is applied when a  current strategy is not working for the business
growth. With that, a common reasons why mostly of the business diversify:

First, it helps the businesses are able to explore new avenues for sales, and in turn, have the
potential to vastly increase their profits.

Second, it helps the business to minimize the risks that may affect it's growth.

Lastly, it will serve as a defense mechanism to protect a company from strong competition.

You might also like