Merger and Acquistions Implementation Strategy
Unit 4 Discuss Board – “Merger and Acquisitions Implementation Strategy“
Patricia Pittman
MGT680 STRATEGIC MANAGEMENT
Dr. Robert Smotherman
“You are part of a company who has made the strategic decision to acquire another company. There are two possible implementation strategies for this decision: (AIU, 2008)”
A. “Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies. (AIU, 2008)” 1. “What are the pros and cons of this implementation strategy? (AIU, 2008)”
PROS: With a LEAN production there would the streamlining up and down the supply chain, all production in-house and no outsourcing. (Mergers and Acquisitions, 2007) The lower cost of inventory in the warehouse, because it would be product with a just-in-time schedule. (Mergers and Acquisitions, 2007) The complimentary products will combine production for out-of-season products and have a stable workforce and cause the production levels to be stable all year long. (Mergers and Acquisitions, 2007) The corporate organization streamline its support and share services when combined in increase efficiencies, increase profit, avoid duplication of effort and cost.
CONS: The earnings are inflated due to acquisitions and cheap debt. In order to keep a 15% earning growth they would have to do several acquisitions year. (Mergers and Acquisitions, 2007) The merging of two cultures, two business process and two IT technology process (Incorporating Social Networking Systems with Mergers and Acquisitions, 2008) 2. “How will you know if the strategy is working? (AIU, 2008)”
B. “Operate the acquired company as a separate business entity. The result of this strategy will be two separate companies under one senior management “umbrella” (the senior management team that is responsible for running both companies). (AIU, 2008)” 1. “What are the pros and cons of this implementation strategy? (AIU,
Patricia Pittman
MGT680 STRATEGIC MANAGEMENT
Dr. Robert Smotherman
“You are part of a company who has made the strategic decision to acquire another company. There are two possible implementation strategies for this decision: (AIU, 2008)”
A. “Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies. (AIU, 2008)” 1. “What are the pros and cons of this implementation strategy? (AIU, 2008)”
PROS: With a LEAN production there would the streamlining up and down the supply chain, all production in-house and no outsourcing. (Mergers and Acquisitions, 2007) The lower cost of inventory in the warehouse, because it would be product with a just-in-time schedule. (Mergers and Acquisitions, 2007) The complimentary products will combine production for out-of-season products and have a stable workforce and cause the production levels to be stable all year long. (Mergers and Acquisitions, 2007) The corporate organization streamline its support and share services when combined in increase efficiencies, increase profit, avoid duplication of effort and cost.
CONS: The earnings are inflated due to acquisitions and cheap debt. In order to keep a 15% earning growth they would have to do several acquisitions year. (Mergers and Acquisitions, 2007) The merging of two cultures, two business process and two IT technology process (Incorporating Social Networking Systems with Mergers and Acquisitions, 2008) 2. “How will you know if the strategy is working? (AIU, 2008)”
B. “Operate the acquired company as a separate business entity. The result of this strategy will be two separate companies under one senior management “umbrella” (the senior management team that is responsible for running both companies). (AIU, 2008)” 1. “What are the pros and cons of this implementation strategy? (AIU,