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Unformatted text preview: overlapping
products, services, or customers in multiple markets;
products, Resource similarity The degree to which a competitor has similar
amounts and kinds of resources.
amounts External Corporate Growth
Merger/Acquisition Horizontal: Kraft - Cadbury
Vertical: Comcast – NBC Universal
Conglomerate: Tata Group (Tetley , Corus Steel,
Jaguar/LandRover) Leveraged Buyout (LBO) An attempt by employees, management, or a group of investors
to purchase an organization primarily through borrowing.
KKR / RJR-Nabisco (Barbarians at the Gates)
(Barbarians Mergers and Acquisitions: Why? Why Not?
Entering a new market
or High expenditure, of
money and time;
money Consolidating an
industry Legal and tax
complications; Speeding the
development of a new
product or service.
product Difficulties in merging
two very different
cultures. Making a Merger Work
Clear strategy and vision
Quick and through planning and implementation
“Chemistry” at the top Take-aways
Strategy is about uniqueness;
Uniqueness is achieved through the
development of core competencies and unique
combinations of opportunities and capabilities;
Uniqueness has to be deployed appropriately 5F analysis
Mergers and Acquisitions...
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This document was uploaded on 03/18/2014 for the course AEM 1200 at Cornell University (Engineering School).
- Spring '06