ZuoTi.Pro
Question

If a related company begins to purchase unrelated businesses, in what ways should it change its...

If a related company begins to purchase unrelated businesses, in what ways should it change its structure or control mechanisms to manage the acquisitions? Please elaborate and use examples.

business   Operations-Management   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

When a related company starts purchasing unrelated businesses it has a plethora of strategic business units which needs to be managed carefully, more so because they are newly bought ones and the firm is yet to be experienced in their management. Thus, one major change which is required is the introduction of multidivisional structures. Multidivisional structure is a design of the organization structure which is much more complex than the functional structure and allows a firm to diversify and grow in size, but keeping good control and coordination at the same time. Functional structure is more effective when they are used for single or double industries handling strategic business units.

Also the control mechanism like the introductions of corporate headquarters staffs is necessary

at just the level below the CEO in organization hierarchy.

0 0
Add a comment
Know the answer?
Add Answer to:
If a related company begins to purchase unrelated businesses, in what ways should it change its...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • There are two ways that a public company can finance its operations, it can issue stock,...

    There are two ways that a public company can finance its operations, it can issue stock, or it can borrow money. The pros and cons of debt (whether it involves getting a loan or issuing bonds). Based on this information, 1) Give two examples of situations where a company should use one type of financing instead of another. 2) Are there other considerations besides the pros and cons of debt and equity financing that you would consider if you were...

  • Social responsibility is an obligation whereby organizations should have to behave in ways that do not...

    Social responsibility is an obligation whereby organizations should have to behave in ways that do not harm their customers, employees, other people or the environment. In a purely economic sense, this is counter-intuitive. Absent a real threat of financial harm, an organization has no incentive to behave in a socially responsible manner. To state it another way, if it increases the Company's cost but does not increase profits, why should a company behave in a socially responsible manner? Laws and...

  • What are two of the most effective change management practices a company or institution should use...

    What are two of the most effective change management practices a company or institution should use to gain the support of employees in making a major change? What competencies or skills must a leader exhibit to support an organization change? Is there a leadership theory or practice found to be more effective in today's ever-changing environment? If so, what is it and why? If not, why isn't there one more applicable?

  • For what reasons might a company purchase its own stock? Is the accounting different when a...

    For what reasons might a company purchase its own stock? Is the accounting different when a company purchases its own stock, and if so how? How does it affect the stockholders' equity section? Distinguish among and provide an example of the following terms: Cash Dividends Property Dividends Liquidating Dividends Stock Dividends Why would a company use each of these types of dividends?

  • Crew Soccer Shoes Company is considering a change in its current inventory control system for soccer...

    Crew Soccer Shoes Company is considering a change in its current inventory control system for soccer shoes. The information regarding the shoes is as follows: Average demand = 200 pairs/week Lead time = 4 weeks Order cost = $60/order Unit cost = $16.50 Carrying charge rate = 0.30 Desired service level = 95 percent Standard deviation of weekly demand = 35 Number of weeks per year= 52 The company decides to use a fixed-order-quantity system. What is the economic order...

  • Pagemaster Enterprises is considering a change from its current capital structure. The company currently has an...

    Pagemaster Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 25 percent debt. There are currently 8,100 shares outstanding at a price per share of $50. EBIT is expected to remain constant at $44,000. The interest rate on new debt is 7 percent and there are no taxes. a. Rebecca owns $17,000 worth of stock in the company. If the firm has a 100...

  • A group of food processing businesses are pooling capital to begin an insurance company, GULP Insurance...

    A group of food processing businesses are pooling capital to begin an insurance company, GULP Insurance LLC. Their goal is to provide a layer of property insurance protection for each investing company, and eventually sell policies to others (who are not investors) through a distribution system. They have established a company in the state of Connecticut, and will be selling policies in New York, New Jersey and Connecticut. The product is specialty commercial property Coverage for food processors, and they...

  • (1) Imagine you want to change someone's attitude on what car to purchase. Describe how you would (2) In the Yale Attitude Change approach, there are three u wantedcomponents to attitude chan...

    (1) Imagine you want to change someone's attitude on what car to purchase. Describe how you would (2) In the Yale Attitude Change approach, there are three u wantedcomponents to attitude change. form your arguments if you Chapter 7 to use central and peripheral routes Identify and describe these three of persuasion. Which type of persuasion would lead to long- lasting attitude change? parts of the model. Then state the major criticism of this model. (3) After the Milgram study,...

  • A company must decide whether to manufacture a component part at its Michigan plant or purchase t...

    please use excel to answer the following question. A company must decide whether to manufacture a component part at its Michigan plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars) and includes the (prior) probabilities of the demand (assuming no test market study). Low Deman 36% $20 $10 man Demand Probabilities Manufacture yourself Purchase from vendor 35%...

  • Lydic Enterprises is considering a change from its current capital structure. The company currently has an...

    Lydic Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 2,150 shares outstanding at a price per share of $70. EBIT is expected to remain constant at $20,000. The interest rate on new debt is 10 percent and there are no taxes. a. Rebecca owns $30,100 worth of stock in the company. If the firm has a 100...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT