- Published: October 31, 2021
- Updated: October 31, 2021
- University / College: Columbia University
- Language: English
- Downloads: 12
For the purpose of maintaining production, acquisition (monetary gains or profits) and income, shareholders in their own businesses often buy stocks in a firm that actively acquires new businesses on a routinely basis. Further, it is through proper facilitation and strategic management of acquisitions that a company or investor experience profit. In so doing, most shareholders engage in weighing the different options they have in mind like the ff tasks and procedures: 1) investing solely with one’s own market, 2) investing in a monetary or money market, and 3) investing in the firm which is actively acquiring.
All of the aforementioned options where an investor may invest one’s stocks or money predict gains and profits; however, it is not always consistent to move towards the investor’s desired direction or outcome (of upward rising of one’s gain and profits). All the options have its pros and cons yet this paper would emphasize on the best strategic management of gaining acquisitions through investing stocks in the money market.
Upon buying and investing stocks in the money market, one must be prepared for the possible outcome of the decided investment: it is either it rises or falls, or remains unchanged. This type of investment obviously, is fluctuating and unstable and so, it is very uncertain for an investor might lose the same cost of the whole price of capital or the total money invested; yet, the positive outcome of investing in the stock market also have an increased probability to gain more stock wherein it (stock) has limitless and infinite tendency to rise for the investor’s beneficial income and gain.
Furthermore, buying stocks for investing it in the money market was guaranteed by many investors as an effective way of enriching one’s assets. So to speak, Business As Usual always include risks (BAU), so investing stocks in the money market, though may be unstable is the best and safest way of dauntless initiative of risk-taking in pursuit of achieving desired end: of propagating one’s assets and capitals (FinWeb. om 2008). Acquisitions as the Substitute for Innovation Acquisitions replace innovation. To invent new products in a particular firm for a desired increase in a company or an investor’s profit, companies create new and improved internal products or they purchase products outside to facilitate production and strategically improve and promote the company with its assets through marketing the specified products.
Buying new products may increase the company/investor’s gain by getting more exposure to advanced technological products and thus, increase product knowledge; though at worst; it may cost them a big fortune (Zachary 2008). However, the best way to increase profit and avoid net loss is to develop internal products for the company to recycle existing raw materials and maximize its usage with lesser instance of waste and decline in capital or earnings.
Furthermore, enhancing one’s products is a challenge for the management to attain flexibility to integrate the company’s goal for the purpose of job motivation and satisfaction among employees, and increased satisfaction upon meeting the demands and necessities of target consumers or customers. Although, the challenge may also cause the opposite effect if acquisitions are not managed correctly, time, energy, and effort might be compromised and just wasted upon execution of the internal flexibility management (Bergey & Goethert 2001).
Conclusion Proper enactment of strategic acquisitions predetermines a company/ investor’s chance of success. For continuous production, effective marketing, and increase in profit, management devices many ways to achieve such desired goal, but the best way to propagate stocks is to invest money in the stock market and for the companies, the cheapest and much desired way of achieving flexibility is by improving management and internally develop products for customers with its less cost of time, effort, and energy from manpower.