When a firm does not have the resources required for pursuing a growth strategy, and if the resource in question is not easily tradable, the implication for the strategist is most likely to

Question

Brianna Barajas

Business

20 January, 17:50

When a firm does not have the resources required for pursuing a growth strategy, and if the resource in question is not easily tradable, the implication for the strategist is most likely to

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Mckenzie Burns · Answer 1

When a firm does not have the resources required for pursuing a growth strategy, and if the resource in question is not easily tradable, the implication for the strategist is most likely to consider an outright acquisition.

Explanation:

When a firm buys another company or accumulates the shares in another company so that it can take full control of it refers to the outright acquisition. This kind of strategy is practiced by the companies when it wants to expand the product's and service's scope.

When the company wants to be a major player in the industry in which it is surviving and offend itself from its competitors it can use this strategy. When the company does not have resources that is essential to achieve its growth strategy and the resources that are not tradable easily then it can consider an outright acquisition.