Analytical Report - Acquisition as a Growth Strategy Essay

Analytical treat - Acquisition as a Growth Strategy - Essay ExampleApart from continuous teaching of harvest-feasts and services, there are several strategies for organisations in order to achieve growth quickly. One much(prenominal) dodge is learnedness strategy which is often considered as the exclusive province of business for large organisations. Growth by development learning strategy is quicker and a less risky proposition compared to former(a)(a) strategies such as increasing the market or sales. Moreover, acquisition provides organisations with numerous benefits such as easier funding, complete managerial control and higher economies of scale (Mustafa & Horan, 2010). The advantages of expansion through acquisition is not merely restricted to marketing, notwithstanding alike expanded for attaining several other advantages such as easier finance, lower risk and increased product portfolio. The paper provide analyse the acquisition strategy of pure bullion by using techniques such as SWOT analysis, PESTEL analysis and Ansoff Matrix. Furthermore, the paper will also define the other alternatives which might be pursued by Virgin Money as a growth strategy. The paper will also recommend how Virgin Money lavatory build a sustainable advantage by using the four cornerstones of competence based strategic management. Task1 Critical Analysis of Acquisition Strategy of Virgin Money In November, 2011, Virgin Money had acquired a British bank named Yankee Rock which was critically affected by the mortgage crisis. This acquisition would help Virgin Money to expand its business wee-wee in the UK banking market (Anderson, 2011). SWOT Analysis of Acquisition Strategy of Virgin Money Strengths The acquisition of Northern Rock by Virgin Money will provide easy integration of all facilities provided by Northern Rock and will have positive impact on the growth of Virgin Money. The acquisition strategy can ensure Virgin Money to make a strong presence in the banking industry of the UK. Virgin Money has the capability to incorporate acquisition with fewer disturbances and it will provide slap-up advantage not only to Virgin Money but also to the complete Virgin Group, because the acquisition will help to provide financial support to other Virgin Group businesses. In banking industry, it is earthshaking for a company to constantly improve the distribution of their products. through with(predicate) acquisition of Northern Rock, Virgin Money can definitely increase and improve services such as internet banking, retail banking and other facilities. Therefore, the acquisition can provide excellent growth prospects for Virgin Money in the banking business of the UK. The other advantage of Virgin Money due to the acquisition of Northern Rock is the increased source of income. Through acquisition, Virgin Money can inevitably acquire the client base of Northern Rock which can provide immediate income from them. Besides, the acquisition will als o help to gain experienced employees from Northern Rock, which will make much easier for Virgin Money to implement new strategies which can be feasible for