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Legacy strategy

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The president that you're reporting to is a holdover from before the acquisition. He has some vested interest in the previous strategy, such as it is. How would you handle the delicate situation of dealing with the president and his legacy strategy?

Previous assignment- Walden International, the proposed new parent company of Able, is a large multinational conglomerate.
Walden International, the proposed new parent company of Able, is a large multinational conglomerate. It is an extremely financially well-run company, with an emphasis on short-term, quarterly results. In fact, it is Walden's key value proposition to its stockholders that each quarter's sales and pretax profits will be greater than the prior year's corresponding quarter. Walden has a 35-year record of consecutive quarterly increases and absolutely every other corporate objective is subordinate to extending this streak indefinitely. Walden works very quickly re-engineering and consolidating the common functions of its acquisitions into its own administrative services. These functions include accounting, legal, engineering, and customer service. The savings that are realized through the elimination of these common services are usually passed on to the bottom line. Sometimes, if a good case can be made, those funds are reinvested in the new subsidiary.

One of the biggest obstacles to the implementation of a successful business strategy is the clash of value systems between a parent and subsidiary. These differences often manifest themselves in conflicts between the various levels of strategy: corporate, business, functional, and operating. Below are a number of the sticking points between Able and Walden. Discuss the steps you would take to address the issues.THE OLD PRESIDENT STAYED ON!!!

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The response addresses the queries posted in 521 words with references.

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The response addresses the queries posted in 521 words with references.

//The given discussion paper is based on legacy strategy. Prior to discuss the delicate situation handled by the President. As per directions, we will discuss about the strategic decision making in the Company. In this section, I have given the concept and background of the whole strategy in detail.//

It is widely accepted that strategic decision making is a complex activity. No one set of factors can be sufficient for exercising a strategic choice. Strategic position is an approach that considers the company's strategic position in tandem with the strategic position of the industry. Walden international is the parent company of Able. Walden international focuses on the increase in sales in every quarter. There is a need to maintain a strategic alliance between parent and subsidy companies. The strategies of Walden and its president are not suitable to its subsidy. All the strategies, such as business, functional, corporate and operating, need to be revised in order to resolve the conflicts (Wilson & Gilligan, 2005).

The values of the parent company needs to be communicated to the employees of its subsidy. This will ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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