Strategy Implementation and Control Essay Example | Topics and Well Written Essays - 1000 words

Strategy Implementation and Control - Essay Example Companies when they become bigger they achieve economies of scale and so they can have competitive advantages. In addition, a merger/acquisition may help the company to reduce its foreign exchange exposure by having local manufacture rather than importing. Finally, other advantage may be that the company may alleviate its debts because the merging firm may take over the depts.. Some of the disadvantages have to do, especially when there are cross-border differences, with conflict among employees due to cultural differences. Sometimes, there may be the case of having negative reaction from the host country. The pros of the above strategy is that the two companies will be under the same roof and so it will be easier for a manager to manage them both. The cons may be the possibly different employee cultures. In order that a merger/acquisition becomes successful the company has to follow these steps: have good pre - and post- acquisition/merger planning, have effective leadership and adequate due diligence. Very important is also if the employee cultures are effectively merged, perhaps this is the most crucial factor. Another key factor of a successful acquisition is co-location i.e. the two companies should be brought under the same roof. The strategy is working when the two companies operate well together and they have market synergy. They have mutual understanding and they share each others funds, technology and markets. Very important is also if there are no cultural differences since this factor has led many mergers/acquisitions to failure. 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). 1. What are the pros and cons of this implementation strategy The pros are that each company can operate independently but both companies can be evaluated in a strategic way. Independent operation is particularly good in case the companies have highly