Growing the Business From External Sources
Joint ventures, acquisitions, mergers, and leveraged buyouts are motivated either by offensive actions or defensive actions. That is, they are utilized in times of organizational stability and success on the one hand and in the midst of organizational chaos and failure on the other.
Either way, these four models, or strategies, have an impact on organizational growth and business processes. Likewise, they have a strong entrepreneurial character—that is, they can be motivated by entrepreneurial drive, or they can spawn ideas for new ventures.
Take a moment at the beginning of this week to reflect on and research real-world examples of joint ventures, acquisitions, mergers, and leveraged buyouts.
With these thoughts in mind, and based on your reading for this week:
Consider the advantages and disadvantages of these four venture growth strategies. How have corporate entrepreneurs used them to grow their organizations? Conversely, what are the risks associated with these strategies, and why do they sometimes fail?
Post your response to these questions by Day 3.