Module 2--Growth Strategies BEC Higher Module 2--Growth Strategies

Company growth subsidiary, headquarters, sales offices, warehouses, R&D division, main plant

Matching to acquire; to go public; to grow; to sell off; to create; to be listed on the Stock Exchange; to go bankrupt; to lay off; to close; to divest to go public; to sell off; to set up; to go out of business; to expand; to take over; to make redundant; to shut down

differences lay sb off—make redundant—dismiss—fire grow—invest—divest—acquire—merge—take over—go public—diversify—get listed on the stock exchange—expand—set up a subsidiary organic growth, non-organic growth

Retaining the voc in context(1) The ______ (expand) of the market creates a need for enhanced and more regular supply, and this in turn impels(驱使) commercial capital to acquire control of production as well.

Retaining the voc in context(2) The main part of intellectual education is not the ________ (acquire) of facts but learning how to make facts live.

SAP’s organic growth New words: to stay at the top of the heap blockbuster acquisitions core database business SAP-dominated business applications market

distant number-two player to acquire an industry solution software license internal innovation midmarket

acquisition—the second best strategy for growth—non-organic “buy body parts and make a body out of it” Organic growth—by growth of sales; by developing additional services, the ecosystem of supportive technologies Grow faster—15%-17% in sales through internal innovation and small-scale acquisitions

SAP’s growth strategies against Oracle’s FE GB AC Oracle’s growth strategies—expansion through acquisitions, sometimes very big companies with quite different skills SAP’s growth strategies—organic by increasing sales and small acquisitions that are closely related to what they are doing. SAP’s long-term strategy—to increase sales to medium-sized companies and to develop a platform for all its applications.

Mergers and acquisitions employees, shareholders, customers, suppliers opportunities, threats reason: synergies—1+1>2 reducing central functions, finding complementary activities

threats confusion due to the changes in name, systems or management contracts need to be re-negotiated changes in working conditions, possible job loss rise in value of shares? long-term perspective?

opportunities better efficiency, quality, services new opportunities in other parts of the new whole restructuring—new responsibilities and job opportunities definite short-term rise in value of shares

Dave Duffield’s letter to his employees purpose? tone?

the news? What price? the feeling? Why? chief work over the next few weeks? different outlooks for the employees? What would be a different conclusion? final request? continue to work with our heads held high? a company with class?

Company profile Number of employees? Business specialization? Organizational structure? Corporate structure?

Your ideal employer?(1) an organization that emphasizes: Individual responsibility and empowerment of employees Teamwork and consensus Clear lines of reporting and areas of responsibility Quick decision-taking and action

Your ideal employer?(2) Long-term, careful planning Creativity, innovation and taking risks Clear and consistent procedures Job security Customer satisfaction Measureable results

Your ideal employer?(3) Employee welfare Financial reward for employees Non-financial rewards(training, career development) Informal relationships between staff and management

Discuss your answers with your partner. Taking into account your partner’s preferences, recommend a job and a type of company to him/her.

Presenting facts Talk about your own company, its history and its status quo. Refer to p22 for hints for delivering presentations.

Interview Talk about yourself and your work, focusing on: Skills and training needed for the job Career prospects Rewards of the job (financial and non-financial) Opinion of the prospects for this sector

Thank you!