Development methods Essay Example | Topics and Well Written Essays - 500 words

Development methods - Essay Example There are both undertaken to improve the performance measure or increase the cost saving opportunities. Organic growth is whereby a strategy is achieved through building on advancing the capabilities of an organization. It is defined as the growth rates of the firm excluding the scale increases from mergers, acquisition or takeovers (Hess, 2007). In strategic alliance, more than one  firm  shares resources and activities in order to pursue a strategy. Hassanien, Dale and Clarke (2010, 17) define strategic alliance as an arrangement between two or more independent firms, which makes a decision of operating in a certain business. This is through jointly coordinating resources and skills on their own or merging their operations. Microfinance industry is one of the institutions that have been growing significantly through organic, merger, acquisition and strategic alliance. This sector has attracted many investors because of varied reasons, hence strategically increasing the performance level. The first reason is that the industry is not only based on financial motives but also managerial and market share motives. Many microfinance firms have been operating their business where there are potential markets. Shenkar and Reuer (2006, p. 123) argue that many microfinance industries strive to survive in the global competitive market; thus many of them seek for alternative means of surviving in the competitive global market. Therefore, they conduct mergers and acquisitions as well as choose organic growth and strategic alliance in order to achieve successful business performance. The merger between Britvic and AG Barr is inclined; thus it is a share deal with management emerging from both companies. The deal is structured as an acquisition from both companies and the shareholders seem to be on the top. Both organizations share the shame profits and the annual cost savings are