How Does Technology Affect Corporate Strategic Decision Making

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1.1 Introduction The main purpose of investment and acquisition is to maximize the profit and firm value through corporate strategic decision making (Babanazarov, 2012). The technology acquisition is strategic decision making as well as financial strategic management which can also called technology management. It is immensely important for firms to understand the market needs and technology to accomplish the organizational objectives. Most general sources of technology are competitors, customers, research centers, providers and universities. The technology acquisition is governed by joint ventures, capital investments, mergers and acquisitions, non-equity and minority holdings (Gallardo, 2013). In this new era of the world, significant change…show more content…
Acquisition scope has also reached the financial investment by $4.2 trillion in 2007. In which most of the acquisition are hi-tech or “technology acquisitions” that mostly acquired by mostly all types of technology firms in order to enhance the innovation and development process of technologies with constant cash flow from all respect of market growth. Technology acquisition is mostly designed to take competitive advantages, strategic alliance, licensing, new enterprises and collaboration. However, these are most risky, complex, integration, control on decision making and higher level of corporate investment (Omri,…show more content…
The main purpose of this research analysis was evaluating the key perspective of technology of acquisition from the point of view of strategic and financial management. There are significant strategic advantages of technology acquisitions are sharing of knowledge, wide range of product portfolio, innovation, research and development (R&D), diversity, competitive advantage, customer satisfaction, geographical, risk averse, financial growth and maximize the shareholder value. There are also key financial strategic benefits of technology acquisitions are cost reduction, increase the share market value, tax saving, risk diversify and economies of scales. There are also research analysis are indicating technology acquisitions are mostly based on high financial risk due larger investment and there are significant chances of failure due to poor performance and less evaluation of post and pre financial analysis. Dell and EMC acquisition have larger investment up till now in the field of technology. Both companies have been sharing the high-tech versions of innovative features such as cloud, storage space, networking connection and others. Therefore, it is very important for Dell and other technology or high-tech companies to analyze all strategic and financial merits and demerits before signing of

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