Explain the arguments for and against the multiple forms of Essay

Explain the arguments for and against the multiple forms of acquisition (as stated in the article) which can be used as the basis for a company's strategy for entering emerging markets - Essay Example gh different stages preferably starting with the process of acquiring minimal equity stake of other company which can over the years be converted into complete acquisition. It allows a company to minimise the risk related to one time investment and opt for different growth strategies as per the requirement. Carlsberg began it journey in Poland through staged acquisition. The staged acquisition along with the advantage of minimising risk of large investment also has some flaws. One of the biggest flaws is that the process is time consuming and can take a company several years before it could actually start generating a good business. The company also gains limited access to the different local brands of the partially acquired company and thereby innovation factor takes a backstage. Multiple acquisitions can be defined as company’s aggressive form of expansion into the untapped markets. In this form of acquisition a company aggressively invests in acquiring multiple firms in the desired market and later integrating them under a single brand. This helps the company to gain faster access of the local market and the company can adopt the multi-tier strategy to think globally and act locally. Acquisitions of different firms and different brands not only increase the company’s brand value but also the market share. Carlsberg’s staged acquisition in Poland soon transformed into various multiple acquisitions. For any company multiple acquisitions along with advantage also highlight disadvantages in a big way. Multiple acquisitions features risk of high amount of investment which may affect a company’s future cash inflows. Secondly, opting for multiple acquisitions without prior knowledge of the local market can further add to the woes of company. Also if a company in the near futures decides to exit that market, the cost of exit will be very high. Indirect acquisition allows a company to acquire not only the desired firm or brand but also the equity stakes of