Objectives | Sub-objectives |
1) MARKET | · increasing market opportunities and capabilities · overcoming obstacles or exploiting the benefits due to global trade, political and economic integrations · faster entry into the selected foreign market · meeting the growing environmental and safety requirements · fulfilling the offer by adding or complementing programs · taking over market leaders’ shares and maintaining the existing ones · winning new positions and niche markets in newly created markets · responding to increased competition and defending the existing situation · use of a common brand name · entering industries that are not saturated or have a higher rate of return |
2) TECHNOLOGICAL-DEVELOPMENTAL | · pooling or sharing the rising R&D costs and investments in technology · adapting to rapid innovations and general and technological progress · pooling and sharing development knowledge, experience and information · shortening the time of introducing new products and accelerating innovation · setting global standards |
3) REDUCING RISK AND INCREASING INTERNAL STRENGTH | · risk sharing and dispersion · defence against risky or unwanted takeovers · increasing internal strength by learning from others · accelerating growth through early connections · forming political networks for the institutional introduction of innovations |
4) ACHIEVING THE ECONOMY OF SCALE AND RATIONALIZATION OF BUSINESS | · economy of purpose (special added value to the product) · economy of scale (achieving critical mass) and sharing and complementing the capacity · general cost rationalization · elimination, integration and dislocation of individual business functions |
5) FINANCIAL AND FISCAL OBJECTIVES | · achieving financial synergies and tax advantages by maximizing profits · stronger internal capital market |
6) MANAGERIAL OBJECTIVES | · consolidation of the position, reduction of personal risk, material benefits of private control · achieving political influence · exploiting the asymmetric information distribution (insider ship) |