Divestment, Mergers and Strategic Alliances

Abstract

The previous chapters have been concerned primarily with the issues that have to be considered whenever strategy is focused in one direction rather than another. By contrast this chapter is more concerned with means than with ends. All strategic decisions about the extent or direction of growth will also raise questions about the method of growth, and this chapter concentrates on two types of question: If strategy requires a narrower focus — a withdrawal from some plants or market areas, increased dependence on outsourcing instead of integrated supplies, or downscoping to focus more intensively on core activities — how might the surplus units be disposed of? If strategy requires additional resources — more of the same resources for specialised growth or new resources and competencies for vertical growth or diversification — how might the additional resources be obtained?