Explore BrainMass

Strategic Management: Downsizing, Downscoping, Acquisitions etc

What are the differences between downscoping and downsizing and why are each used?

What are the attributes of a successful acquisition program?

What are the five categories of businesses based on level of diversification?

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

What are the risks of an integrated cost leadership/differentiation strategy?

What do firms need to know about their competitors? What legal and ethical intelligence gathering techniques can be used to obtain this information?

© BrainMass Inc. brainmass.com July 22, 2018, 6:29 pm ad1c9bdddf

Solution Preview

Explanation of Strategic Management Questions

What are the differences between downscoping and downsizing and why are each used?

Downsizing may involve selling or restructuring one or two subsidiaries or functional units of a business. Typically, it involves lay offs or reduction in work force. Downscoping, on the other hand, involves restructuring or selling off units that are less related to the main business, but without layoffs or work force reductions. Downsizing may be used when the company is facing cost challenges and cash flow problems. Downscoping may be used when the organization must focus on its core strengths, to gain competitive advantage. Often the parent company and the spin off company can achieve performance improvements with a downscoping approach (Desai, Nixon, & Wiggins, 1999).

Desai, H., Nixon, R.D., & Wiggins, R.R. (1999). Downscoping vs downscaling spin offs:
Parent, subsidiary, and proforma performance. Academy of Management Annual Meeting, Chicago, 1999.AOM-BPS Submission # 10771. Retrieved October 31, 2014 from htp://connection.ebscohost.com/c/articles/27594622/downscoping-vs-downscaling- spin-offs-parent-subsidiary-proforma-performance.

What are the attributes of a successful acquisition program?

Attributes of a successful acquisition program include maintaining positive work force throughout the acquisition process, with little to no hostility or anger, assets of both organizations complement each other, to enhance abilities, are carefully selected, maintain financial stability, low to moderate debt, flexibility to compete within the industry, and focus on innovation, as a core strength (Open Learning World, 2014). These are attributes that indicate acquisitions are undertaken to positively benefit the organizations, rather than to create negative consequences. Often, an ...

Solution Summary

The questions and answers focus on strategic business practices.