Acquiring another organization in same Industry Essay

Acquiring another(prenominal) organization in same Industry - Essay ExampleStrengths/Opportunities (1) Achieve geographic expansion by means of selling more of the same product (2) Use joint resources to different product. Commonly referred to as synergies (3) Increased market power (no competitor in the market) (4) Benefit by using the same set name to promote multiple products.Weaknesses/Threats (1) Risk of anticipated economic gains (2) Management to make sure (before acquisition) that imagined benefits are real, For instance, Siemens Pakistans technical partnership with Karachi Electric Supply Corporation (KESC) failed and finally Siemens had to part with with KESC.Recommendations Now-a-days Horizontal Integration is the most common growth strategy taking place all everyplace the world. We have tens of examples where horizontal consolidation has effectively & successfully taken place.In the recent past Unilever Pakistan bought-out the trip the light fantastic ice cream and launched a new ice cream in the name of Walls. Although it was an unrelated melody integration i.e. Unilever was not in the ice cream business before, it has been very successful in this strategic move and doing well in Pakistan. Likewise, mergers/acquisitions of pharmaceutical firms and banks, etc. have also proved to be successful. The philosophical system behind horizontal integration is If you cant beat, buy it.In my opinion horizontal integration should be beneficial for M/s. McBride Financial Services because the firm already has experience and relevant expertise to run the same kind of business. It would be simply like a business expansion. Moreover, this way intensity level of rivalry (competitor) would get diminished and the firm could smoothly advance with the business acquired. However, two basic questions guide to be addressed before acquisitionLam, T. & Lao, T. (2010) under the introduction states that, Horizontal integration should enable a firm to expand its pro ducts and existence