StudentShare solutions
Triangle menu

Commercial Logic of Acquiring Mandrake Footwear - Coursework Example

Extract of sample
Commercial Logic of Acquiring Mandrake Footwear

The decision to make acquisitions is taken by several companies in many parts of the world every now and then. Some of these decisions eventually proof to be vital and profitable while others turn out to be wrong decisions because they result in losses (Olsson, 2001). Fundamentally, the prediction as to whether or not a particular acquisition would be beneficial depends on a number of factors. Among other things, it should be possible to evaluate the commercial logic of the intended acquisition (Patra, Khatik, & Kolhe, 2003). If signals from the evaluation turn out to be bright, then the acquisition could probably be beneficial. In the case of Gear Active acquiring Mandrake Footwear, there are four major themes that can be used in evaluating the commercial logic and viability of the acquisition. These are briefly explained below. Ready Market with existing Customer Base Commercially, an acquisition such as the one Gear Active is seeking to undertake comes with the position whereby the acquirer has at his disposal, the ready market that the existing company had. They also have access to the existing customers of the companies that they acquired. This is an important commercial value that purchasers can build on as competitive advantages (Roy, 1999). To Gear Active therefore, there is this major advantage in acquiring Mandrake Footwear. Already, Mandrake Footwear has been identified as a major competitor in the footwear industry. The company is also seemingly larger than Gear Active. This means that Mandrake has created a very huge market base that Gear Active would only need to build on. The acquisition would therefore be an opportunity for Gear Active to record massive expansion over a very short period of time. Unlike what would have existed in a merger case, this acquisition would make Gear Active an outright owner of the acquired footwear company and so Gear Active would record a quantitative expansion that would more than double the size of the present state company. This expansion shall be in terms of asset capital, market base and customers. Existing Popularity The popularity of a company is an important commercial value that cannot be underestimated in anyway. Many companies have been able to develop their popularity to building a competitive advantage over rivals. Without any doubt, there are companies who have continued to top the chart of revenue makers not because of their present performances but because of the popularity they have created for themselves over the years (Sackmann, Flamholtz, & Bullen, 1989). In the commercial market, it is possible that the popularity of a particular brand of product would make the name of that brand stand for the product that the company manufactures. For example one of NESTLE’s a cocoa drink brands named Milo is so popular in most countries that people who want to purchase cocoa drinks from retailers actually say they are buying Milo even if they are not making specific reference to NESTLE’s product. With such a situation, the possibility that Milo would loss its market value is very low. The same situation applies to Mandrake and Gear Active in this instance. Clearly, the name that Mandrake has gained for its brand is enough for Gear Active to continue building on that name to its advantage. Opportunity to Access New Organizational Culture An organization’s culture is an important element for determining the commercial value and predicting the future success of the company in question (Sandervang, 2000). This is because the organizational culture goes a very long way to determine how the company deals with its customers, suppliers and wholesalers. It also refers to the employee-employer relationship that would go on in the company. These dealings are also very important in determining whether or not a company would succeed (Schmidt, Minssen, 2007). This is because they serve as service values for which these stakeholders would choose one company over the other. ...Show more

Summary

The decision to make acquisitions is taken by several companies in many parts of the world every now and then. Some of these decisions eventually proof to be vital and profitable while others turn out to be wrong decisions because they result in losses (Olsson, 2001)…
Author : matilde20
Commercial Logic of Acquiring Mandrake Footwear essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Commercial Logic of Acquiring Mandrake Footwear"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

International commercial dispute resolution
TABLE OF CONTENTS Introduction……………………………………………………………………….4 History…………………………………………………………………..................4 How is Arbitration Different From Other Municipal Laws.
16 pages (4000 words) Coursework
Business and Commercial Awareness
William Stillspike being the Managing director of view.com is a stakeholder who is responsible for mapping out the strategy of the company. The dwindling sales are also affecting the owners of the company (view.com) who are the biggest stakeholders in the company.
8 pages (2000 words) Coursework
Business and commercial awareness
The dwindling sales are also affecting the owners of the company (view.com) who are the biggest stakeholders in the company. In case the company sales do not turn around then Tina Tarot who is the head of the DVD department might be fired and thus
8 pages (2000 words) Coursework
Commercial Law Coursework (question is given on order instruction)
Thus, a seller with enough bargaining power can impose retention of title clause by virtue of this section and a case law known as Romalpa1. There are categories of RoT clauses. (1) Simple retention
6 pages (1500 words) Coursework
Commercial law
Sale of Goods Act 1979, 853, goods are put into several categories, which determine the appropriate time that the intended title passes. Section 6(1) of The Sales of Goods Act 1979
10 pages (2500 words) Coursework
Unit 1 Assignment 1: Understanding Program Logic
Finally, the calculated value stored in myAnswer is displayed as output. The program ends when myAnswer is shown as output. A. In this program, the following tasks are accomplished step wise. Firstly the program begins. After this, two input numbers are taken from
1 pages (250 words) Coursework
IT106-1404A-01 : Introduction to Programming Logic
It thus enables the developer to understand the It is at the design stage where the flow of data and processes are defined, to avoid logic errors. Thirdly, the design of software provides the decision
2 pages (500 words) Coursework
Introduction to Logic
That is why the ideas that guide actions of the people should be free of fallacies which are removed by logic (Tarski & Tarski, 1994, 108) If I were to describe my logical process, I would have to mention that I tend to slow my pace of thinking
1 pages (250 words) Coursework
PHILOSOPHY OF SCIENCE (First unit which is logic)
Moreover, nothing really important ever depends on such arguments. However, when it comes to generating scientific knowledge, a simple mistake in an argument is able to show the wrong direction of a research and this will waste one’s time and resources and bright negative
1 pages (250 words) Coursework
Commercial real estate- Manhattan
It is also the most preferred area for establishing multinational media corporations (Carlyle, 2014). In addition, it hosts top notch Universities in the world. The borough is divided into three towns, lying in
7 pages (1750 words) Coursework
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment