Acquisition Strategy – Summary

ACQUISITION STRATEGY BY ALBERTO MEDINA MGT 450 ESSENTIALS FOR STRATEGIC MANAGEMENT INSTRUCTOT TRAVIS WILLIAMS January 23, 2011 In todays marketplace it is very important for federations to remain competive in order to exercise an edge over its competitors. The days that a company can bank on its reputation to continue making profits are gone. Today, everyone is look to save cash by buying little expensive items same(p) economy brands, considering that the diffrences between the two products are similar and the features that are not offered are of little value.This pass on make a consumer buy the less expensive item. Like consumers, companies are also looking at to save money and maximize profit. One way of doing this is through accomplishment strategies. Combining the trading operations of two companies is a very good option for companies that are looking to stregnthening the companys competincies and competitiveness, this go out ultimately open new market opportunities ( essay/Thompson, p. 119). The benefit of this type of strategy, unlike alliances, they do not go farthermost enough for the resources needed and a very important factor, ownership.In the following paragraphs, I will give two examples of two distinct companies in different industries and explain how they will stregnthen their market position through acquisiton, to include resources and competive capabilities. The runner example I will use it Wells Fargo & Co. results from the encyclopaedism of Wachovia Corporation. During the economicalal crisis Wells Fargo & Co. acquired Wachovia Corp in a bail out to appreciation the bank from going under. At one point Wachovia was Wells Fargos competitor. After the acquisiton it made Wells Fargo a banking giant absorbing its competion.Earnings from that acquisition have earned Wells Fargo Financial & Co. a 21% compensation since the acquistion, reporting record profits. This acquistion has allowed them to gain market share, this was most ly created by harming new customers. Mortgage loans was the top earner and low rates and prices of homes dropping to record lows has allowed the company to grow even in these tough economic times. Additionally, the acquisition of Wacovia Corp. moves Wells Fargo as the guerrilla largest bank, second only to marge of America. The strategy has allowed them to acquire a larger share of the financial market. The second company I will discuss is DuPont Nutrition & wellness and utilise BioSciences acquisition of Danisco Corp. Once a long time partner of DuPont, is a very good and turn out company, is a good fit because of their proven market science business and offers clear synergy for them. The acquisition will make them the clear leader in industrial biotechnology with inovations in global challenges in food performance and fossil fuel. This effort will position the company ahead of all rivals addressing dramatic growth in human population in the years to come.Danisco is well esta blished company that has research and application capabilities. This will create a more court efficient operation of the combined companies. The applications do not need to be duplicated, meaning their buying power will increase, administrative functions do not need to be replicated, and will further create more live savings by downsizing. This acquisition will also allow them to show new product categories, for example 65% of Daniscos revenue comes from strong suit foods, product substitution items such as sweetners and enablers.This will allow them to visualise renewable materials and addressing food needs. In conclusion, I have discussed Wells Fargo & Co. , and how their acquisition of Wachovia Corp has allowed the company to gain a larger geographic coverage has helped it create a more cost efficient operation by allowing to cut overhead costs by elliminating duplicate processes. Second, DuPont Nutrition & Health and Applied BioSciences acquisition of Danisco Corporation h as allowed DuPont has made them the clear leader in industrial biotechnology with inovations in global challenges in food production and fossil fuel.This gave them quick access to new technologies and other resources thus increase their competive capabilities. Refrence 1. Essentials of Strategic Management, the Quest for Competitive Advantage 2nd Edition, John E. Gamble/ Arthur A. Thompson Jr. , McGraw-Hill/Irwin Companies Inc. 1221 Avenue of the Americas, New York, NY, 10020. 2. ProQuest, Ariticle, Biotechnology DuPont Acquire Danisco for $6. 3 Billion. Anonymous, diary of Technological Science. Atlanta Jan 30, 2010. pg. 609. Periodical. 3. ProQuest, Wells Fargos Results Show More Benefits of Wachovia Deal, wall Street Journal(Online), New York, NY Jan 19, 2011. Newspaper.