Acquisition Strategy Analysis Essay Example | Topics and Well Written Essays - 1000 words

Acquisition Strategy Analysis - Essay Example This paper will mention two organizations that are under a different industry operation but make use of acquisition strategies in order to make their positions stronger in today’s competitive business world (Chan, 2003). Advantage presented by a merger or acquisition to either two or even more organizations is an option of strategic positions that are attractive for the ability to achieve operating economies, thus strengthening the effects of the organization’s competitiveness and competencies, resulting to new avenues that allow more innovative market opportunities. An acquisition can be referred to as a combination between two or even more organizations or companies whereby, one of them thoroughly buys and assumes all the operations or processes of the other one. These strategies, if properly researched and handled, can result to generation of an enormous amount of profit to the organization; however, not every single company that makes use of mergers or acquisitions can be termed as successful. Most companies are yet to meet their goals or expectations as a result of acquisitions performance. In fact, a handful of the organizations have epically failed (Gamble & Thompson, 2011). ... Sixteen years ago after its publicity, its market capitalization was approximately 120 billion dollars, which is vastly larger than that of Xerox, Apple, and Dell combined. Cisco has managed to sail through whereas several because of its expertise in professionalizing processes which most firms occasionally embark on when they need them or when they are greedy to make more profits. The Airspace former CEO once said that most of the companies he had interacted with rarely use acquisition strategies and in fact, integration is their job at night. He went ahead to say that, unlike the others, Cisco consists of individuals whose initiative is to strategize both during the day and night. Acquisition therefore, to him, is the company’s core function (Gamble, 2011). According to experts, Cisco is a highly successful company in terms of identification of new technologies in the market and taking calculated corporate risks mainly in markets that are new. However, the main point to note is that the firm’s acquisition and merger operation strength lies elsewhere. The firm noticed that technology acquisition cannot only lie on technology but the people as well. Hooper, the CEO, said that the firm’s most strategic and useful asset is the people. The people in this case mean the firm’s expertise. He says that once the firm loses product managers and technologists who may have created, say, a router to a link after an acquisition, then it may be said to have lost an immense deal of products which might have only existed in the heads of those employees. The core nucleus to the firm’s acquisition machine may be said to be its development group. It comprises of 40 individuals securely tucked to a cubicle firm that is