Acquiring another organization in same Industry Essay

Acquiring another organization in same Industry - Essay Example Strengths/Opportunities: (1) Achieve geographic expansion by means of selling more of the same product; (2) Use joint resources to different product. Commonly referred to as â€Å"synergies†; (3) Increased market power (no competitor in the market); (4) Benefit by using the same brand name to promote multiple products. Weaknesses/Threats: (1) Risk of anticipated economic gains; (2) Management to make sure (before acquisition) that imagined benefits are real, For instance, Siemens Pakistan’s technical partnership with Karachi Electric Supply Corporation (KESC) failed and finally Siemens had to discontinue with KESC. Recommendations: Now-a-days â€Å"Horizontal Integration† is the most common growth strategy taking place all over the world. We have tens of examples where horizontal integration has effectively & successfully taken place. In the recent past Unilever Pakistan bought-out the Polka ice cream and launched a new ice cream in the name of Walls. Although it was an unrelated business integration – i.e. Unilever was not in the ice cream business before, it has been very successful in this strategic move and doing well in Pakistan. Likewise, mergers/acquisitions of pharmaceutical firms and banks, etc. have also proved to be successful. The philosophy behind horizontal integration is: If you can’t beat, buy it. In my opinion â€Å"horizontal integration† should be beneficial for M/s. McBride Financial Services because the firm already has experience and relevant expertise to run the same kind of business. It would be simply like a business expansion. Moreover, this way intensity of rivalry (competitor) would get diminished and the firm could smoothly advance with the business acquired. However, two basic questions need to be addressed before acquisition: Lam, T. & Lao, T. (2010) under the introduction states that, â€Å"Horizontal integration should enable a firm to expand its products and existence

Global Perspective Essay Example | Topics and Well Written Essays - 500 words - 3

Global Perspective - Essay Example Instead, and to a great extent, it has exposed the depth of the differences which separate people and countries, ultimately leading to a more fragmented world. The current global political reality, especially in light of the events of September 11th demands that we revisit the notion of the New World Order and redefine it. The technological revolution has, to a degree, brought cultures closer together. It has done so through the provision of tools which facilitate popular cross-cultural communication, such as internet chatrooms. There is no doubt that technology, whether it assumes the form of the internet or electronic/satellite media, has created greater understanding between populations but, it has also exposed the width and breadth of the differences between them. These differences, which found expression in terrorism and the events of September 11th, are that which the New World Order is about. The New World Order may be defined as one in which the threat of communism has been replaced by the threat of terrorism. It is a world in which differences between people has become more pronounced, despite the fact that globalization and technological developments have facilitated cross-cultural