Monday, April 22, 2019
Make a recommendation for Free Range on how it should restructure to Essay
Make a recommendation for Free Range on how it should restructure to take its operations global - Essay exercisingBefore analysing the two strategies, it is important to examine the facts and context of this paper, specifically those pertaining to Free Range. Firstly, the friendship has been in the grocery for a considerable amount of time (since the mid-1980s) and has remained sustainable despite similar businesses exiting the industry due to challenge conditions. Secondly, the company is very committed to social responsibility and the environment, which appear to guide its corporate policy. Thirdly, the company is in a good position financially. This is reflected by the fact that its sales have been growing by an bonny of 20 percent annually this has crapn it a huge presence in the American bungalow cheese segment. The three facts outlined above show that Free Range would benefit more from takeovers than mergers.Although mergers would give the company a sound platform on whi ch to build its expansion program, there is a noteworthy risk of compromising the companys values, especially if it partners with much larger firms. Although it is established in the US, the company will face larger and more competitive rivals in the European and Latin American markets (Cartwright & Cooper, 2012). integrate with smaller companies would reduce the companys expansion momentum while merging with larger firms would abandon it the freedom and control it needs to define its corporate strategy. With its significant share of the US market and proud sales revenues, Free Range has adequate capacity to successfully execute takeovers. Mergers do not check the companys status and profile, considering that the best option would be to partner with larger firms that would suppress its visibility.Takeovers produce more flexibility than mergers and Free Range needs to be as adaptable as possible. through and through takeovers, the company can acquire midsized firms in foreign m arkets and use them
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