Fallon Worldwide Change - Essay Example

Again the company could face challenges to meet certain complex requirements which are related to global economies and more demanding clients. At that point of time management had to take initiative to create such an image in the market that the company was not changed. The acquisition was just a strategic move to achieve more percentage of growth in the market. Acquisition is such kind of corporate action which is a part of company’s growth strategy. It is beneficial for any two existing firm’s operations which are going to be merged through the acquisition procedure.

Here in the mentioned case study, Publicist Group SA acquired Fallon and after the acquisition some impacts was observed within the organization. The impacts were both positive and negative by nature. Positive impacts are as follows. Stakeholder’s expectation will be increased for such kind of acquisition. They will expect that the company will achieve more percentage of growth from the acquisition. As a result, they will invest more amount of money in business and more amount of capital will be generated.

Financial strength will also be increased (Karenfort, 2011). The risk taking ability will be improved by the companies. Market power also will be improved and company can achieve more market share through acquisition than the earlier days. Some entry barriers can be overcome due to the acquisition. Resources will be available in easier way. Expertise of both the companies can be shared and thus both the organization can get success in the market place. In the case study, Fallon got the success in the market for the above mentioned impacts and not only the agency got the success but also won several awards in the relevant field.

Its interactive consulting group has become a full-fledged division only for the shared expertise between two companies (Doyle, 2005). Describing about the negative impacts this can be observed that Fallon may face integration problem because