Class 4 MA BSBA 2011 Cisco

Class 4 MA BSBA - BUSI599 – Mergers& Acquisitions BSBA – Spring 2011 1 Prof David Ravenscraft Kenan-Flagler Business School University of

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Unformatted text preview: BUSI599 – Mergers & Acquisitions BSBA – Spring 2011 1 Prof. David Ravenscraft Kenan-Flagler Business School University of North Carolina Session 4: Cisco 2 M&A Strategy Proces s New Competencies needed for vision What Bidder brings to the table? Company Analysis Bidder Core Competencies Bidder Future Vision Industry Analysis Industry Analysis Industry Fit/Synergy Strategic Fit and Option Value Position/ Synergy Potential Cost Savings Revenue Enhancement Environmental Analysis Stock Market Reaction Related Merger Environment Industry Analysis External Assessment Turning Strategy into Action Deal Pipeline Target Company Identification Entry Option Evaluation Clear Vision of deal process & integration Acquisition Target(s) CEMEX, GE, CISCO 3 Setting Acquisition Strategy What Does Bidder Bring to the Table? Transferring Core Competency • Resource/Core Competencies Based Theory – Assets: people, technology, locations, products – Competencies: knowledge, skills, processes – Capabilities: ability to transform, improve or change firm performance and competencies over time • Resources/Core Competencies satisfy several criteria – Valuable -- provide real benefits to customers/stakeholders – Inimitable -- be hard for competitors to imitate – Rare – better than competitors – Organizationally relevant -- apply across firms business units – 4 Cisco Core Competencies • (a) culture that accepts new ideas • (b) customer driven (measurement & bonus) • (c ) leadership 50% with customer, lets employees achieve personal goals, identifies leaders & empowers them • (d) Reputation & PBA (Pioneering Brand Adv.) (not fired for using Cisco) • (e) new product development, clear process (5 clear stages in NPI process), all cross-functional (engineering, marketing, mnf.), speed to market • (f) outsourcing decision (outsourcing mnf competitive advantage), they focus on intellectual part logistics, qualifying suppliers, new process development • (g) strong distribution channels, powerful sales organization and value added resellers (VARs) • (h) Process systems like MRP (material resource planning) and Autotest (product testing system & statistical process controls, forecasting...
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This note was uploaded on 02/13/2012 for the course BUSI 599 taught by Professor Ravenscraft during the Fall '10 term at UNC.

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Class 4 MA BSBA - BUSI599 – Mergers& Acquisitions BSBA – Spring 2011 1 Prof David Ravenscraft Kenan-Flagler Business School University of

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