Business Case Analysis

2786 WordsMay 23, 201212 Pages
|BUSINESS CASE ANALYSIS & PROBLEM SOLVING | | | Table of Contents Introduction 3 Case Considerations and Actions 3 Considerations for a Joint Venture 5 Considerations for a Buy-out 5 Other Considerations 7 Conclusion 8 References 9 Appendix- The Case 10 A Joint Venture or a Buy-out? The Case of Lilly and Lannie Corporations 1 Introduction It has been a strategy for businesses at different industry to look at integration as the solution to problems on increased marketability…show more content…
Looking at the need for Lilly Corporation for expansion, it will be a problem for the company if they don’t have a reliable partner for their raw materials. Lannie Corporation on the other hand has been in the business for 50 years, which suggest that they have proven their name in the business. Problem occurs as the company was greatly affected with surging increase in oil that directly affects them. As this happens, the need to look at this and to resolve the issue may result to selling out. This is an option that they have to consider especially that labor issues are also a problem of the business. Though both companies have their own strengths but further assessment of the situation, the management has to do something in order to avoid further complications. For Lilly Corporation, it has a name in the international food processing industry, which means greater and bigger opportunities awaits. Lannie Corporation in as much as struggling for saving the company has to opt for sell out as the last resort for the business. 3 Considerations for a Joint Venture A joint venture between Lilly and Lannie Corporations is possible with too much risk. The major advantage of this strategy is that the transition is faster and is more efficient. These is something that a mother company should also consider especially that the mother company has to understand culture and company
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