Unformatted text preview: operational scope created by diversification
may cause managers to rely too much on financial
rather than strategic controls to evaluate business
– Strategic focus shifts to short-term performance.
– Acquisitions may become substitutes for innovation. 1–24 Problems in Achieving Acquisition Success: Managers Overly Focused on Acquisitions
• Managers invest substantial time and energy in:
– Search for acquisition candidate and due-diligence
– Preparing for negotiations.
– Managing the integration process • Diverting attention from other strategic matters
– Long-term competitive success
Identifying and capturing opportunities
Interacting with key stakeholders 1–25 Problems in Achieving Acquisition Success: Too Large
• Additional costs of controls may exceed the
benefits of the economies of scale and additional
• Larger size may lead to more bureaucratic
• Formalized controls often lead...
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- Spring '12
- Firm, Achieving Acquisition Success