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60 videos available, organized into playlists for easy access.
Main Topics
Internal Growth
Example: A small family-owned coffee shop in London making profits and deciding to open branches across the city (Oxford Street, Leicester Square, Hyde Park Corner, Stratford).
Internal Growth: Using internal profits to open more branches. Growth from within the business.
Easier to manage compared to external growth.
External Growth
External Growth: Involves mergers or takeovers with other businesses.
Example 1: Airtel (Indian telecom) merging with Robi in Bangladesh to become Robi Airtel.
Process is called a merger (external growth).
They formed a new combined business.
Example 2: Facebook acquiring Instagram for $1 billion and WhatsApp for $19 billion.
Takeover: Buying over 50% of shares to gain control of the company.
Different from a merger, as Facebook took control over Instagram and WhatsApp.
Synergy and Integration
Synergy: The idea that the whole is greater than the sum of its parts.
Integration: Combining different companies for better performance.
Advantages: Exchanging ideas, enjoying economies of scale, and saving on costs (shared facilities, marketing, HR, and legal teams).
Challenges: Larger size may be difficult to manage, differing methodologies, and cultural or managerial clashes.
Horizontal Growth
Definition: Growth in the same industry and at the same stage of production.
Example: One garment factory taking over another garment factory.
Advantages: Reduces number of competitors, enjoys economies of scale, and an increased market share.
Vertical Integration
Definition: One firm takes over another firm in the same industry but at a different stage of production.
Forward Vertical Integration: Moving closer to the consumer (e.g., garment factory taking over a retail outlet).
Advantages: Control over sales processes, direct consumer interaction, and independence from third-party retailers.
Backward Vertical Integration: Moving towards the raw material production (e.g., garment factory taking over a textile factory).
Advantages: Ensures quality, reliability, and timely supply of raw materials.
Conglomerate Diversification
Conglomerate: One firm takes over or merges with another firm in a completely different industry.
Example: Tata Group operating in consultancy, tea, chemicals, power, cars, and hotels.
Advantages: Spreading risk across different industries, transferring ideas and technology.
Strategic Alliances and Joint Ventures
Partnerships formed for a specific purpose or period without merging or taking over.
Examples: Apple's alliance with Intel for chips, movie production partnerships.
FES’s strategic alliances with universities and firms for specific purposes (e.g., providing IELTS training).
Conclusion
Summary of integration types available in the book.
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