Acquisition and Alliances

Name

Tutor

Institution

City, State

Date

For any given organization to grow, various managers usually adopt various means of having body needs that are required for the organization to grow and have a positive succession method. One benefit of using external means is that the organization, when it adopts external means such as outsourcing the organization, tends to concentrate more on its core business needs. On the other hand, the outsourced team is given the task of operating other organization functions that does not necessarily need to be managed by the organization. For instance, a business organization may decide to outsource IT team to carry out the IT activities on the behalf of the organization. With this, it becomes an easy task for an organization to concentrate on the business needs rather than handling both business and IT operations. When business just concentrates on its core activities, then it becomes easy for an organization to make good profits since it has no load of performing other activities that tend not to be bringing profit to it.
When a company adopts an external means of learning some of its affairs, it becomes risky in several ways. For one, when an organization hires external team the organization privacy information is usually at stake since the outsourced team may leak the trading and other privacy information to competitors. For instance, when an organization hires another firm to carry out some activities in the firm when the firm contracts expire they usually move out of the company. When the organization moves then, it steal the privacy information that is usually used by the organization as a trading tool. Due to this fact using external means at some point becomes difficult since the organization data and other critical information may be leaked to the competitors (Cartwright & Cooper, 2012, p. 189).

Reference List

Cartwright, S., & Cooper, C. L. (2012). Managing Mergers Acquisitions and Strategic Alliances. Boston: Routledge.