INDUSTRIAL MARKETING Coursework Example | Topics and Well Written Essays - 500 words

INDUSTRIAL MARKETING - Coursework ExampleIn the short term, such a growth strategy can be incredibly effective for some(prenominal) reasons. The first is the visual of it. Acquiring natural companies is a sign of growth and vigour for a company, which makes investors find the company more desirable, artificially inflating its value. But the sure statistics of growth would also, in the short term, be very positive, showing a new growth in assets as well as operating tax revenue year over year.2. This growth strategy failed for several reasons. In one way, it was doomed to fail from the start. This is because the fundamental structure was actually somewhat akin to a pyramid scheme. As it acquired more and more companies it became more and more difficult to find other companies to acquire, and eventually this would have limited its field of growth in a fundamental way. But the failures of management at Worldcom also ensured that this collapse happened sooner than it might have had t o. The company never streamlined its acquisitions to take advantages of economies of scale. moreover the costs of managing more and more small, subdivided companies, handling the massive amounts of different kinds of structures, billing systems, method of accounting systems and so on would grow. So the sum of all of the acquired companies was, with every new acquisition, actually somewhat less efficient than they had been pre-acquisition. For a short period of time the new acquisitions would be able to paper over this inefficiency, at least superficially, but the venture was destined to failure unless major integration efforts were pursued, which they never were. In an attempt to continue the superficial image of success, the company undertook malfeasance in their accounting techniques, further harming their long term chances of success.3. It took such a long time for several reasons. One is that every indicator of success that businesses usually tend to placard would have been p ositive - operating income, net