Strategic Management Unit 5 DB SA Final Week - Essay Example

Strategic Management Unit 5 DB SA Final Week Response to template Any companies that decide to merge their businesses should ensure that they are ready to embrace weaknesses and strengths from both sides and use them for success (Sherman, 2011). The template puts it well when Genentech and Roche Holding embraced their weaknesses and strengths and both companies in combined efforts were focused on great development. Johnsons & Johnsons with Cordis too were patient with each in their progressive growth of business which saw them successful.

Sherman (2011) argues that failure of mergers on the other hand results from differences between the two merging partners which hinder business development. These differences could be due to misunderstanding and inability to tolerate each other’s weaknesses. Examples are the merger between Alcatel with Lucent and Daimler with Chrysler which were brought down by disagreement on approaches of various strategies and language barrier.Response to template 2 According to Sherman (2011), acquisition of other companies also needs proper strategies and adequate information about the company that is to be acquired to make sure that they have complete knowledge of how the company they plan to acquire is doing and what problems are facing that particular company.

This then ensures that when a company is acquired the business will not collapse at some point. The successful acquisition of Google on Picasa and Where 2 must have been due to adequate research before acquiring the two. Acquisition can also fail when a company goes head on to acquire a certain businesses without identifying and establishing its nature and its problems well Sherman, (2011). The presented template shows well how acquisition fails when Microsoft failed on acquiring Danger Company without full knowledge of its internal problems.

It also failed to establish the compatibility of the Place Ware Place before it went on to acquire it.References listSherman, A. J., (2011). Mergers & acquisitions from A to Z. New York: American Management Association.