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The role of business strategy
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In the modern time, the competitive business world seems to be more serious than previously. The main aim of business strategy is creating the benefit in trade and also reducing some of its limitations. Furthermore, another strategy that is applied to the modern business world is to link the economic globalization such as in order to become a listed company on the stock market. We can see lots of advantages by listed companies compared to private companies such as financial stability or are more opportunities to do business. It is an absolutely interesting that the top biggest companies in the world, (by top 100 companies) are all listed on the Stock Market, such as Wal-mart stores the biggest companies by 2010 (Fortune global 500, 2010) listed on The New York Stock Exchange (NYSE) and also The London Stock Exchange (FTSE), Toyota Motor Corporation, fifth of ranking by 2010 listed on The Tokyo Stock Exchange, (NIKKEI), also listed on NYSE and FTSE. There are many positive ideas to support listing on the Stock Market, the opportunities to companies, in addition, by attracting foreign partners also greatly increase capital investment (Suarez and Canal, 2003). In term of the opportunity to raise funds, it can be easier than a private company because of any rules, practice, and several more factor that make standardisation, used by (The Stock Exchange of Thailand, 2008). Being listed on a stock exchange has many advantages that a business owner of any size might consider as part of a businesses strategic plan. Moreover, when expansion and leveraging are on the business agenda, stock exchange listing can cast a wider net into the capitalization pool i.e. the potential sources of equity funding. (Berry, 2010: website) Moreover, t... ... middle of paper ... ...d on the Stock Market is the best way to build a modern business. However, were increasing opportunities to do business while less the power of control may is some concerns that the owner has to think before make a decision. (Suarez and Canal, 2003) commented that the benefit of strategic alliances can help the company improve the competitive of opportunity, such as a company might be turning a potential rival into a partner which helps each other’s or the benefit in term of revenue because that can turn create new market opportunities, it is allowing for imitation or competition in the same market was more difficult. The joint venture as a partner in the network causes the result that benefits shareholders. In addition, it also increases the ability of the growth in international business and also makes a good public image, these effects to the prices of stock.
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.
Sharing of knowledge, technology, and capital that are brought to the company by the partner.
launch the stock price of this company, and incentivize new investors to lend shares for new capital.
You must have something to trade . . . Stock. Stock is a form of a security which is an investment that one makes where the investor is completely dependent on the efforts of another person. There are many benefits to going forward with an IPO. Transitioning from a closely held corporation to a publicly traded corporation can allow the early investors to capitalize financially on their investment. An IPO may also inject much needed capital into the corporation. CB at 800. The sale of securities is regulated by the Securities Exchange Commission (SEC). The SEC created specific laws with the 1933 Act in order to protect investors from fraud, while the 1934 Act provided a private cause of action. CB at 729. For a corporation to sell its stock shares publicly, it must be registered or have an exemption from registration. In registering, the corporation must file a statement providing corporate details concerning its financials and much more information that potential investors would want to know.. CB at
...ative aspects of diversification, for example through better corporate planning, human recourse management and reaching further synergies between its various business lines.
However, the concerns of partnering with a firm can lead to exploitation or copy/take away proprietary, competency, technique or technology, which will harm future long term gains.
Yan, A. and Luo, Y. (2001), International Joint Ventures: Theory and Practice. (New York and London: M.E. Sharpe, Inc.).
significant activities in the strategic way better than the rivalry firms (Lüsted, 2012). It is
Before the alliance the two firms were in totally different market and they were also in different country but the industry was of same type. Both of the firms were aware about their future plan and lacking.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
The Forbes Global 2000 is a useful indicator of which are the leading public companies in the world, but it is only an interpretation, as only public companies are listed. The results are not definitive; any change to the criteria would produce a different list.
Organisational change can arise due to a change in strategy and this begins with examining capabilities and the internal environment. This is portrayed in the Strategy diamond. Firstly through arenas the organisation can plan where they will be active in and which part to place most emphasis on for example technologies or value creation strategies. Only after determining this can they implement a positive change, leading to the next element, vehicles to get them where they need to be such as alliances. This can lead to change in management along with strategic partnerships, and the way managers transition to this change will determine if the strategy impacts on the overall organisation in a way that reinforces its purpose and goals. Partnerships indicate how an organisation can strengthen its capabilities by merging with businesses who possess the skills they lack. (Carpenter et al. 2010)
The stock market; all though enticing, is no get rich quick scheme. It is a rather complex economic system that can be found throughout the world. It has seen a great deal of changes since its inception. The history of the stock market is very much like that of a graph of a stock with plenty of ups and downs. Without all of its highs and lows we would not have the stock systems we have in place today. Today we have a system where the companies and traders have a mutualistic interest; for the stocks to excel. It is the talking point of many conversations along with being subject to much speculation. Stock markets are ever expanding as more and more IPO’s are being filed. With a platform in place to allow crucial funding to corporations, the stock market is one of the most important systems set in place.
Once there was a time when “shares in business corporations were rarely bought and sold because few companies were considered promising financial profits” (Blume 21). That is hard to believe considering almost everybody has invested in some stock today. The stock market went through some distinct changes since its inception, and has evolved into a shaping force in the world today. There is one idea that sparked the fire which produced the stock market: capitalism. Everything the stock market is, and was, rooted in the basic idea of capitalism. Without that idea, stocks and bonds would never have come to be.
The stock market is an essential part of a free-market economy, such as America’s. This is because it provides companies the capital they need in exchange for giving away small parts of ownership in their company to investors. The stock market works by letting different companies sell stocks to gain capital, meaning they sell shares of their company through an exchange system in order to make more money. Stocks represent a small amount of ownership in a company. The more stocks a person owns, the more ownership they have of that company. Stocks also represent shares in a company, which are equal parts in which the company’s capital is divided, entitling a shareholder to a portion of the company’s profits. Lastly, all of the buying and selling of stocks happens at an exchange. An exchange is a system or market in which stocks can be bought and sold within or between countries. All of these aspects together create the stock market.