Understanding the Environment of Business - Understand recent trends in the redrawing of corporate boundaries

8 important questions on Understanding the Environment of Business - Understand recent trends in the redrawing of corporate boundaries

What are several trends (5) in redrawing corporate boundaries?

- acquisitions and mergers
- divestitures and spinoffs
- employee owned corporations
- strategic alliances
- subsidiary/parent corporations

A merger in which the acquired company welcomes the acquisition

friendly takeover

A merger in which one company buys enough of the other to have control but the other company is opposed to the takeover

hostile takeover
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A defence adopted by management to make a firm less attractive to a hostile suitor in a takeover attempt

poison pill

Occurs when a company decides to sell part of its existing business operations to another corporation

divestiture

Occurs when a company sets up one or more corporate units as new independent businesses

spinoff

Plans that allow employees to buy significant stakes of larger corporations

Employee stock ownership plans (ESOPS)

Involves two or more enterprises co-operating in the research development manufacture or marketing of  a product

strategic allience

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