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Emma Rudd

Objectives and Strategy - Change in Ownership
Internal and External Growth
External growth occurs when one firm decides to expand by joining together with
another, this may occur either by takeover or a merger. A takeover occurs when one
firm gains control of another by acquiring a controlling…

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Emma Rudd

Gain control over supplies. This may be important to a firm to ensure it can
maintain its suppliers (e.g. in time of shortages) or if it is essential to maintain the
quality of its supplies. By gaining control of its inputs a firm may also be able to…

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Emma Rudd

to which they believe there will be gains such as economies of scale or synergy; the
bigger the perceived value gains the more they are likely to pay.

When deciding what a firm is worth there is inevitably a degree of risk. The risk involved
will depend partly…

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Emma Rudd

only way to enter the market because of foreign government may insist that local
businesses are involved.

Alternatively, a business may set up its own factory abroad and produce for itself. This
is likely to involve high levels of investment and so sill only be undertaken by firms…

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Emma Rudd



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