Business Strategy

Strategic Planning

Strategic planning is a management activity and a process that defines the direction and the objective of an organization over the long term (what should the firm do on the long run?) and that defines how should resources should be allocated to pursue this objectives.

Strategic planning refers to develop a plan of action to achieve a particular goal. It includes an evaluation of the organization and the context. It has a focus on the future. It serves as a guide to allocate resources over the long run, but also as a guide to middle manager.

Taken as an ongoing process, it strategic planning can be a key asset of an organization.

And acquisition is when one company takes over another an establishes itself as the new owner. It usually takes place through the buyout of the majority shares package. This implies the control of every asset of the sold company.

The asset acquisitions strategy consists in the buyout of assets instead of shares. The buyer company doesn’t want to take control over the seller, it just want to acquire some assets he considers of value.

Asset acquisitions process requires the monetary valuation of every asset to be purchased. It’s a costly process.

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