MBA Dr. Paraan
CASE STUDY
”SHARE-A-CAR”
BACKGROUND
Beacon Car Rental Company, a car leasing company, just acquired a new business called VillageCar which offers car-sharing. The scenario tells about how Henry Beyer, the senior vice-president, will integrate the new business with the current. The chief marketing officer, Tony Cummings, wants to convince Henry to take a different course of action in integrating the said business since the method he wants to try already failed with the last venture which is Starr, a well-known smaller rental car chain in the southwest. He is eagerly telling Henry that car-rental and car-sharing is way different from each other but Henry is refusing the idea and still believes that it is the same difference.
They also asked the opinion of Anabelle Howard, the Chief Finance Officer and Henry’s boss. At first she disagreed with Tony’s point of view since it entails managing multiple brands and other things, but once Tony explained his side, she became more open with the idea and became more interested with the innovation.
Last but not the least, he had a small talk with his son Kyle in a restaurant, his son asked a ride back to campus and was surprised to have found out that his father was driving and Audi A3. Kyle asked Henry if mom really allowed his father to buy that car and Henry told him that it was from their new business. Kyle told Henry about how different their generation was. He told him about how they want to try different things out without having the commitment that weighs them down. With his son’s opinion, he was now left with the question of how will he integrate VillageCar?
PROBLEM
1. What are the different types of integration process?
2. What should Henry recommend for the VillageCar integration?
SOLUTION
1. There are two types of integration process, Scale Deal and Scope Deal. First, Scale