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We examined mergers and acquisitions and outsourcing as external Strategic Alternatives. These are initiatives for which external means have been chosen to accomplish strategic goals. Both of these SAs are extremely common and have high failure rates due to their large impact on financial performance and high-stakes nature. External SAs should be considered as strong methods to execute strategy and increase shareholder value but they need to be assessed carefully. The implications of execution are generally more complex than most executives predict.
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