Fin/370

370 Aquisitions
getting some other organization in the same industry

Strengths

hotshot of the strengths associated with Kudler acquiring another organization in the same industry is greater grocery store share. The lodge could control a outstanding portion of the market in relation to specialty foods. This would alter Kudler to expand its sales in the market as a result of combined distribution channels. In addition, the company is fitting to improve its bargaining power with its suppliers. Kudler can enjoy economies of crustal plate and has the ability to keep out new entrants into the industry. The company give be able to pay for the acquisition with its shares, resulting in no liquidity issues, creating synergy between the companies.

Opportunities

By acquiring another company, Kudler can eliminate competition risk in the market and can become market leaders.

Threats

in that location could be a downside in acquiring a new company. Kudler have to do due diligence in picking the right company. For simulation the new company can report financial outrage in the same year in which acquisition took place. Acquiring another business in the same industry (Gomez et. al., 2005). at that place may be conflicts of culture between the acquired organization and the acquiring organization.



Also the threat is that there will be extra of efforts in some departments. If the companys duplication occupation is handled improperly it can lead to a large mo of layoffs, resulting in the fall of morale in both companies. There may also be a situation were the acquired company competes with the Kudler. Finally, Kudler may have to pay a disproportionately noble price for acquisition in the same industry.  

References

Gatty, B. (May 2007). Mighty special. modernized Grocer, 86, 88-91. Retrieved January 4, 2012 from EBSCOHost Research Databases.

Gomez-Mejia, L., & Balkin, D. (2005). Management (8th ed.). New York: McGraw-Hill

Kudler. (2007). Retrieved January 4, 2012, from Virtual...If you want to get a full essay, order it on our website: Orderessay



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