The company may also have made statements in the annual report or announcements to the market about new or different activities it is going to pursue. If there has been a change in the activities, this may mean the company's prospects are significantly different. There may be different cost structures associated with the different activities and they may require different amounts of development or capital expenditure. There may be differences in the amount and timing of revenue for the company. Business strategy can be described in various ways - future directions, strategic objectives, business plans, corporate goals and vision statements.
Many companies make strategic acquisitions in other companies.
For example, they purchase a substantial shareholding in another company. This company may be complementary because it sells key products to your company or it may provide access to additional markets, new technologies or new products. Companies may spend significant resources on areas described as research and development, product development and intellectual property development. These activities generally aim, among other things, to develop new products, improve existing products and help a company stand out in the market. Such expenditure will not always produce immediate results, but it is important for you to understand the size and purpose of that expenditure and any results that have been achieved.