- 1. Determine the main factors that you believe are important for organizations to consider when evaluating trends and predicting the business environment in future years. Provide a rationale for your response.
- Use this week’s reading material and make a prediction about one (1) company of your choice with regards to its external growth strategies (e.g., mergers, acquisitions, alliances, etc.). Justify your prediction using the techniques you have learned in this course.
2. Respond to this post
Use this week’s reading material and make a prediction about one (1) company of your choice with regards to its external growth strategies (e.g., mergers, acquisitions, alliances, etc.). Justify your prediction using the techniques you have learned in this course.
Throughout this course I’ve used Telsa, Inc. as my company of choice. “Tesla, Inc. uses market penetration as its current primary intensive growth strategy. This intensive strategy enables business growth by increasing sales revenues in current markets. For example, with aggressive marketing, the company aims to rollout and sell more of its electric cars in the United States. In this way, the corporation maximizes its revenues from the markets where it currently operates. This intensive growth strategy relates with Tesla’s generic strategy by developing competitive advantage based on increased market share. A strategic objective based on this intensive strategy is to grow the company’s sales revenues through aggressive marketing.” Another example of growth for Telsa is the acquisition of SolarCity Corp. This $2 billion merger “will integrate the maker of all-electric cars and batteries with the installer of rooftop solar panels.” My prediction is that this merger will not only empower their supply chain but it will also make the company more powerful in the energy industry in terms of clean air initiatives and will also increase market share. This will create more barriers to entry and increase the company’s competitiveness.
