Business Closure. This is an undesired act of folding up or shutting down non profitable business units to control or avoid further losses.
Business Disposal. This calls for disposing or unloading some of the members, subsidiaries, affiliates or investments in other business concerns deemed unprofitable or less profitable and/or deemed a burden to the mother organization.
Business Acquisition. This is an option of business establishments meant to expand their size and make their presence felt in whatever area they want to do business.
Business Reorganization. This option may or may not lead to ownership changes among members of the organization or the conglomerate nor it may result to business acquisition or disposal option.
Business Start-up. This option means purposely organizing another business concern instead of simply acquiring an existing business organization or investing in it. The impact of doing nothing different. Sounding weird and uncalled for, status quo can be an option if after a thorough study and analysis such situation is deemed appropriate.
Is an option to take where it might be costly or disadvantageous to engage in any of the other strategies already discussed?
Strategic alliance can be done through process of exploration and negotiation with targeted parties or business concerns leading to signing up an alliance document in the form of memorandum of agreement, memorandum of understanding and/or contracts stipulating mutual desire to attain specific objectives and expressing support for one another
There are specific situations; however, that favor venturing into joint venture and here are some of them:
When a privately owned organization is forming a joint venture with a publicly owned organization; there are some advantages of being privately held such as close ownership; there are some advantage of being, publicly held, such as access stock issuances as a source of capital. Sometimes, the unique advantages of being privately and publicly held can be synergistically combined in a joint venture
b) When a domestic organization is forming a joint venture with a foreign company; a joint venture can provide a domestic company with the opportunity for obtaining local management in a foreign country, thereby reducing risk such as expropriation and harassment by host country officials;