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)