There is no one answer, and not even general guidelines. Some of the many factors that go into the decision include:
- Current product line/maturity - Capability of developing/delivering additional products - Financial resources - Legal obligations/constraints - Corporate culture - Mission of each company - Marketshare - Competition - Five Forces Analysis - Other risks
And then of course there are a wide range of options, from indepenedence to a merger and everything in between.
Mark Herschberg, author of The Career Toolkit
posted 15 years ago
- Current product line/maturity - mature enough to be very competitive - Capability of developing/delivering additional products - will need to grow - Financial resources - sub of a bank - Legal obligations/constraints - not fully fledged obligations as parent - Corporate culture - small culture that won't fit well into parent culture - Mission of each company - happy shareholders - Marketshare - could dwindle in next few years - Competition - increasing - Five Forces Analysis - whats this ? - Other risks - could sink if left on it's own [ October 15, 2004: Message edited by: Helen Thomas ]
As a compagny grows it moves through a nummber of stages. One has to observe what's happening in the organization - is everything running "smooth"? or, for instance, are the (potential) growing number of employees causing problems. A typical problem could be, that the leader(s) are having problems managing both management issues and making/selling their products. Another "crisis" could be, that the top management don't wan't to give up responsibility to the lower-level managers.
Mark also mentiones a number of importent factors.