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Strategic formulation and implementation

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Strategic formulation and implementation
STRATEGIC IMPLICATIONS OF BUY-INS BY CORPORATE HOUSES IN NEWS/MEDIA

Submitted by:
B.V.N.Ramya
10MBI0074
Abstract :
Indian economy is in a growing phase. There are many Corporate entities which are emerging in India because of its growth potential. The Indian based companies because of their growth potential has been expanding domestically and over seas also. Companies to be successful has to adopt a strategy while expanding. One of the ways of expanding is Buy-ins. This paper emphasis on companies which expanded in recent past and the reasons for such doings. Keywords : Stake, Acquisition, India, corporate entities

Introduction :
Corporate entities wish to grow big and want their presence across the globe. For this expansion they will follow various strategies like acquisitions, mergers, Joint ventures, buying stakes in other companies etc. It became a trend for Indian companies to acquire and expand their market in the recent past. This trend had started from the days Tata started expanding its business by the way of Acquisitions. Value of mergers and acquisitions in India during the first half of 2102 has increased by 30.68 per cent to USD 23 billion year-on-year. Indian companies have announced $22.3 billion worth of foreign acquisitions in 2007, according to data from Thomson Financial. The pace of merger and acquisitions (M&A) has slowed in the US in the wake of the recent credit crisis. Major companies in India, having money to spend and a desire to expand, are continuing to pursue M&A opportunities. India is emerging as a global economic and political power. The main motivations of acquirers from India were access to international markets, technology and human skills, operational synergies - and growth limitations of the home market. In the manufacturing sector, acquirers tend to be large, research-intensive corporations, whereas in the IT sector, they are usually older, large, and export-oriented



References: 3) Pillania, Rajesh K “MERGERS & ACQUISITIONS STRATEGY IN INDIA: STUDY OF TOP 100 FIRMS”, Journal of Advanced Research in Management,2.2 ,(Winter 2011): 82-84. 5) Dolbeck, Andrew, Editor , “Mergers and Acquisitions in India: A Different Story” , Weekly Corporate Growth Report ,1469 (Dec 10, 2007): 1,12.

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