Analyse the effectiveness of defensive strategies for a company, using appropriate examples of your own. many M&A leaders were preparing for or considering a divestiture. Activist investors are often one of the biggest reasonsexecutives cite for recent divestitures, even though only 19 percent of our respondents indicate they had been subject toshareholder activism in the past two years. Given the impact of the COVID-19 crisis, this is likely to accelerate asorganizations plan to start returning to normal. End-to-end considerationsWhat course of action should sellers consider as the economy begins to adjust to a new normal defined by a pandemic?Depending on the severity of the crisis's financial impact, divesting non-core assets will be key to preserving andenhancing value in a defensive M&A playbook. Changes in the market and the competitive environment, as well as theneed to raise additional funds; have become key reasons for recent divestitures. Organizations in a crisis, or those thatcannot fix or sell an asset, should explore whether a managed exit of distressed assets can protect the remaining value.Sell-side activity is critical to build this type of advantaged portfolio. This includes being able to quickly identify assets thatwill be non-core in specific economic scenarios, as well as being prepared to execute at the right time. In the end,organizations may realize that the amount of investment required to grow a business and achieve market share would betoo much for them, and that the asset could thrive better under different ownership.A Look AheadThis year's Global Divestiture Survey captures distinct perspectives on recent divestiture activity before a transition point.A market disruption has materialized, and even though it has been long anticipated during an extended M&A boom, it hasarrived in a way no one could have expected. After executing their initial response, companies are recalibrating in an effortto recover and thrive. Corporate divestiture will undoubtedly play a critical role in defensive M&A response strategies andin building resilient portfolios for the next normal." "Divestiture activities will have a strong influence in reshapingbusinesses for the next normal conditions, said lain Macmillan. Deloitte's global M&A leader. It's also inevitable that dealmaking will need to change to reflect these new realities. Especially now, corporate purpose that intertwines sustainabilitywith commercial success, resilience, and building trust across a wide coalition of stakeholders will need to be thecornerstone for future successful deal making.(Source: https://www2.deloitte.com/us/en/pages/mergers-and-acquisitions/articles/global-divestment-survey.html// Date Accessed 18th February 2022)

In the context of corporate divestitures, defensive methods can be extremely beneficial in…

Answered: Analyse the effectiveness of defensive…

Business

Marketing

Analyse the effectiveness of defensive strategies for a company, using appropriate examples of your own.

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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