Unggayan, Joanarhel F.

BSBA FM 3-10s

ASSESSMENT:
1. How can developing strategic partners contribute to an organization?
According to the module, strategic partners are intended to create value for the
organizations in some way, for example, by raising the revenues, or lowering costs, or
generating new ideas and innovations. This is true because these partnerships create
mutual benefits that lead to long-term profits. They can gain new customers from both
parties and unlocks the opportunities for reaching new markets as well. When both
partners are committed to the promise of working together for the betterment of each
other, they can provide resources and technologies that will be helpful for both partners
to improve the business and reduce weaknesses.

2. What is Mergers and Acquisitions in developing Strategic Partnership?

Mergers and acquisition can be pursued for 2 different purposes, one would be
for financial reasons and another for strategic partnership. In this case, strategic
partnership is developed when a company combines itself to another company (merger),
or one is absorbed by the other (acquisition). This is because both companies can share
management and risks of the business. It expands the workforce, widens existing lines
of services, and helps achieve a greater scale in the economy. Generally, the common
goal is growth by achieving diversification in the business leading to a better position in
the market. Partnership through merger and acquisition makes this possible to be
attained since 2 companies can fill in gaps that both companies have.

3. Give one type of Mergers and Acquisitions and explain it in your own words.
Mergers and acquisitions have various types be it horizontal, vertical, congeneric,
conglomerate, etc. They are varied depending on the purpose of merger whether to
lessen competition, expand market, or build a supplier-producer relationship. For vertical
mergers, it involves two companies that operates in different stages of production. An
example could be a company mainstreaming raw materials, and a manufacturer that
produces finished products.