This document discusses strategic perspectives on mergers and acquisitions (M&As). It outlines the industry life cycle and product life cycle models, which involve stages like startup, growth, maturity, and decline. M&As can be used as a strategic tool to achieve corporate goals like business expansion, entering new markets, and exploiting synergies. The document also examines factors that influence M&A decisions, such as competition, regulations, and exploiting hidden values. Strategic approaches for M&As include analyzing strengths, weaknesses, opportunities, and threats (SWOT), using the Boston Consulting Group (BCG) matrix, and applying Porter's five forces model.

1. Strategic Perspectives of M&A
Dr Raju Indukoori

2. Corporate Strategy and M&As
1. Develop Corporate strategy
2. Design or derive Corporate Strategic goals
3. Viability of M&A as one of the tools to achieve
strategic goals
4. Executing M&A as a strategic Vehicle
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3. 1. Business Expansion
2. New markets entry
3. Growth
4. Synergies
5. Diversification
6. Government regulations, Licensing and legal frame work
7. Competition
8. Product development and brand image
9. Exploiting Hidden Values
10. Quick expansion
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Strategic Perspectives

4. 1) Industry Life Cycle
2) Product Life Cycle
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M&A Decision and Life cycle

5. 1) Research & Development
2) Start up or Embryonic stage
3) Consolidation or Growth Stage
4) Maturity Stage
5) Decline Stage
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Industry Life Cycle

6. • Forecast future needs and its demand accordingly.
• Research on need based like society, environment, health
or business motives.
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1) Research & Development

7. Current developments
• Artificial Intelligence
• Robots
• Space travel
• Plant travel
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1) Research & Development

8. • New business idea, new product, new service with no
competition.
• Very difficulty forecast the success and survival.
• High risk.
• 1980s computer.
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2) Start up or Embryonic stage

9. • Organic Food
• Biotech
• Bio Informatics
• Cyber Media
• Drug development
• Environment friendly green products
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2) Start up or Embryonic stage

10. • Seeing the success of the new product, many
competitors mushroom the industry.
• Startup stage survivors become stable and strong looking
at hiking the market share.
• This makes the industry to follow or track the
performance of startup survivors
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3) Consolidation or Growth stage

11. • Automobile
• IT
• Mobile Phones
• Education
• Retailing
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• Electric Vehicles
• Solar Power
• Pharma
• Health Care
3) Consolidation or Growth stage
- Indian Industry

12. • Product reaches all consumers and market becomes
matured.
• Growth is not possible. It may happen due to the
influence of economic growth.
• Price declines as it is heavily competitive hitting profit
margins.
• Referred as ‘Cash Cows’ as they have consistent profits
without growth.
• Profits are paid as dividend as there or no investment
opportunities.
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4) Maturity stage

13. • Steel
• Textile
• Manufacturing
• Oil and Gas
• BPO
• Oil run machines and vehicles
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4) Maturity stage – Indian Industry

14. • Induced costs
• Sales may decline or stabilize
• Price, revenue and profits declining
• Lay offs / pink slips
• Cost cutting and liquidation of assets in excess
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5) Decline Stage

15. • Agriculture
• Mining
• Print Media
• Tobacco
• Key pad phones
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5) Decline Stage

16. Dr Raju Indukoori

17. It refers to the life of the product in the market in terms of
business or marketing costs and its scaling measures.
It is similar to Industry life cycle in terms of cyclical
movements and respective stages. It has limited period
with different stages.
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Product Life Cycle

18. • Aggressive promotion
• New markets
• Price reduction
• Added features
• Attractive packaging
• Inducing consumer habits
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PLC extension

19. 1) SWOT Analysis
2) BCG Matrix
3) Porter’s Five Factor Model
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Strategic Approaches of M&A

20. Any Questions….
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21. Thank You
21Dr Raju Indukoori