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Deliverable Length: 5-7 paragraphs

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:

A. Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies.

What are the pros and cons of this implementation strategy?
How will you know if the strategy is working?
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).

What are the pros and cons of this implementation strategy?
How will you know if the strategy is working?

Be sure to cite all references in APA format.

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Solution Summary

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.

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A. Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies.

What are the pros and cons of this implementation strategy? How will you know if the strategy is working?

The major advantage of this strategy is that merged entity will be able to reap significant cost and revenue related synergies as combined capabilities, resources and strengths of the standalone entities will result in economies of scale, greater market power, significant cost savings and other synergies which will help in eliminating costs and boosting revenue.

However, the major disadvantage is that cultural clash can occur due to the ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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