Tag Archives: Strategy

Acquisition criteria and your initial acquisition plan

DRJOHN2Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan

This is the 3rd of short articles of my thoughts about Acquisition
of a business.

            An acquisition business plan needs to be developed before you begin your search to buy a company. Three overall categories of decisions need to be made: 

1)    Why do you want to buy a company?

2)    What type of company do you want to buy?

3)    How are you going to go about buying the company?

In determining why you want to buy a company, you should ask yourself and develop answers for each of the following questions:

1)    Do you want to run the business yourself or do you want others to help you?

2)    How long you plan to keep the business;

3)    Whether you plan to buy other businesses over time

4)    If buying additional companies over time, do you plan to buy related or unrelated companies?

5)    In determining what type of company you want to buy, you should ask yourself, at the outset:

6)    What industry are you interested in?

7)    How large a company do you want to purchase and manage?

8)    How profitable does the company need to be?

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Strategic Thinking*

DRJOHN2Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan

This is the 3rd of short articles of my thoughts about Leading and Managing winning companies.

Analysis is the critical starting point of strategic thinking. Faced with problems, trends, or situations that appear to come packaged as a whole by common sense of the moment, the strategic thinker dissects them into their constituent parts. Then, having discovered the significance of these constituents, he reassembles them in a way calculated to maximize his advantage. ( briefly, separating the small unit and expanding it as a company in itself applying its technology to a broader possible array of products) True strategic thinking contrasts sharply with the conventional linear thinking. It also contrasts with the risks based on intuition, reaching conclusions without any real breakdown to the components or analysis. No matter how difficult or unprecedented the problem, the best possible solution can come only from a combination of rational analysis, based on the real nature of the problems / challenges, and imaginative reintegration of all the different components into a new pattern, using nonlinear brainpower.

*From :
“The Mind of a Strategist”,
by Kenici Ohmae.

 

Winning Business Leaders

drjohn11aDr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan

This is the second of short articles of my thoughts about Leading and Managing winning companies.

Winning leaders are strongly motivated toward success and have the ability to motivate others to accept change and transition and win in competition.

Such Leaders energize others when personally interact with them.

Successful business leaders are able to:

1) Have a Vision that can clearly be communicated to employees and other company constituencies;
2) Create an unconventional strategy directed in upsetting the key factors the competition has based its strategy on, by challenging the accepted assumptions, within ethical and legal bounds, that govern the way competitors conduct their business, for example, upset the status quo and therefore achieve a novel and powerful competitive advantage;
3) Find and achieve a relative advantage against the company’s competitors, by either advantage in technology and profitability and / or identify relative advantages in the position of its assets and the competition;
4) Put together a uniquely competent and well motivated Team
5) Organize the management structure to be efficient without losing sight of product quality and service.
6) Readjust the company’s available resources in such a way that will enable the company to increase its market share and profitability;
7) Introduce innovations, such as opening new markets-expanding overseas and / or the development and introduction of new products and services.