Strategic Management Decision Making Term Paper

Strategic Management Decision Making - Term Paper Example There have been many avenues for a company to expand its business. Sometimes the reasons for expansion include moving into other industry, expanding in the same industry and expanding in foreign countries. In each of the cases, the company has the choice of setting up business on its own or else going through mergers, acquisitions or any other consolidation processes. In this case, both companies are from the same country. The acquirer company, Games Workshop, would like to expand its business to some other areas which are quite related to what they are into right now. Setting up is the costliest process to come up with. For this reason, the company has decided to go with either merger or acquisition. Valuation is quite an important fact in the whole process. The positive value of the acquired firm is very much desirable. Valuation and other financials have been discussed in a later topic. Later on, it is time to think whether the acquirer would like to go for merger or acquisition. A comparative and tactical study has been done to choose the best way among these two. While the firm and the process have been chosen to be appropriate to carry on the acquisition process, it is of much importance to zero down on the tactical funding strategy. For this economic gain has been taken into account to have an idea about the proper funding strategy which is also in accordance with the financial structure of the Games Workshop. One of the main aims to go for expansion is adding shareholders’ value, which is of quite an importance to a business entity. The calculation has been done to calculate the shareholders’ value addition for each of the companies so that shareholders can have a much better idea about the situation and the added shareholders’ value after the transformation.