Notes on Strategic Choices
Slide 1.1
Strategic Choices
10: Mergers, Acquisitions and Alliances
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.2
Three strategy methods
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.3
The acquisition process
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.4
Acquisition integration matrix
Source: P. Haspeslagh and D. Jemison, Managing Acquisitions, Free Press, 1991.
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.5
Strategic alliance motives
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.6
Alliance evolution (2)
Source: Adapted from E. Murray and J. Mahon, ‘Strategic alliances: gateway to the New Europe’, Long Range Planning, vol. 26 (1993), p. 109.
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.7
Comparing acquisitions, alliances and organic development (1)
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.8
Key success factors
Key elements in managing M&A and alliances: • Strategic fit
• Organisational fit
• Correct valuation
• Integration
• Co-evolution
• Appropriate exit strategies
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.9
Strategic Choices
8: International Strategy
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints
Strategic Choices
10: Mergers, Acquisitions and Alliances
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.2
Three strategy methods
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.3
The acquisition process
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.4
Acquisition integration matrix
Source: P. Haspeslagh and D. Jemison, Managing Acquisitions, Free Press, 1991.
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.5
Strategic alliance motives
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.6
Alliance evolution (2)
Source: Adapted from E. Murray and J. Mahon, ‘Strategic alliances: gateway to the New Europe’, Long Range Planning, vol. 26 (1993), p. 109.
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.7
Comparing acquisitions, alliances and organic development (1)
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.8
Key success factors
Key elements in managing M&A and alliances: • Strategic fit
• Organisational fit
• Correct valuation
• Integration
• Co-evolution
• Appropriate exit strategies
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Slide 1.9
Strategic Choices
8: International Strategy
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints
Links: Source: Exhibit 1, R. Lawson, W. Stratton and T. Hatch (2005), ‘Achieving strategy with Scorecarding’, Journal of Corporate Accounting and Finance, March–April, 62–8: p. 64.