STRATEGIC MANAGEMENT Essay Example | Topics and Well Written Essays - 250 words

STRATEGIC MANAGEMENT - Essay ExampleAll these made HP earn the position as unmatched of the most competitive IT companies back in early part of 2000s.Merger and acquisition can also positively affect the financial performance of companies. adept of the secrets behind the business success of Apple Inc. can be explained through strategic management such as mergers and acquisitions. For instance, Apple acquired not only system of logic Pro but also Emagic in 2002 (Hesseldahl, 2007 Wherry, 2006). This particular business strategy subsequently improved Apples ability to create digital speech sound software which is now being used in its iLife software (Hesseldahl, 2007). In August 2014, Apple decided to purchase Beats Electronics for USD3 billion (Stelle, 2014). Due to invariable transfer of knowledge and technologies, Apple has recently experienced a 9.5% increase in its 2013 gross sales growth (Market Watch, 2014).Financial restructuring ensures that there are higher sales and pro ductivity and better use of the financial resources thus enabling it to take advantage of the possible opportunities. Such financial opportunities include the advantage of sustaining competitive advantage, as well as adopting marketing strategies that can effectively sustain the business in a competitive environment. For example, in the case of Caterpillar, the companys first quarter profit increased right after implementing cost reduction strategies and increasing sales of construction equipment (Forbes, 2014).However, in some instances restructuring is disadvantages to the firms because the process is costly and the shareholders expect from the heavy burden of financing the restructuring strategies. There is also loss of companies assets such as workforce especially in situations where downsizing occurs. Additionally, the procedures and processes of merging are at times lengthy and tiresome. Due to heavy market competition with Komatsu, Caterpillar was losing USD1 million each d ay back in 1980s (Selko,