Organizations and culture: MERGING AND ACQUISITION

“As trade barriers are being dismantled and cross-border investments and capital flows are being facilitated, acquisitions of companies abroad for Indian corporates is no longer a matter of choice but an important aspect of strategy for fulfilling global ambitions.”

4 APR, 2010, 02.28AM, Global acquisitions: India Inc in premier league now , reteieved 10-23-2010 from: http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/Global-acquisitions-India-Inc-in-premier-league-now/articleshow/5758620.cms

For example the JK Tyre’s acquisition of Tornell, JK Tyre’s is the pioneer enterprise of radials in India and Tornell is the most traditional enterprise of tires in Mexico, is a “company with large presence in North America is a case of a successful takeover and management. JK Tyre helped Tornell improve its operational efficiencies and enhance productivity leading to extensive all-round savings.
So what are the learnings for Indian companies? JK Tyre’s success lay in its ability to use local management and skills (only 4-5 Indians were sent) through adoption of its own best practices, suitably modified for local conditions. Cultural integration was key, achieved through extensive communication at every level including Indian personnel learning to speak Spanish. Acquisitions have to be made where they provide strategic value rather than just a desire to grow. Thus, selection of target companies and assessment of what it would provide to acquirer should be the starting point.”

“A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another with no new company being formed.”

Retrieved October 23, 2010 from http://www.answers.com/topic/mergers-and-acquisitions

1. Image retrieved from: http://www.trendbird.co.kr/32

I also recommend to watch this video:

Organizations and culture

domingo, 24 de octubre de 2010

MERGING AND ACQUISITION

No hay comentarios:

Publicar un comentario