Acquiring another organization in same Industry Essay

Acquiring another organization in same Industry - Essay ExampleStrengths/Opportunities (1) Achieve geographic expansion by federal agency 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) avail by using the same brand 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, sec Pakistans technical partnership with Karachi Electric Supply Corporation (KESC) failed and finally Siemens had to discontinue with KESC.Recommendations Now-a-days Horizontal Integration is the most common growth outline taking place all over the world. We have tens of examples where horizontal integration has effectively & successfully taken place.In the recent past Unilever Pakistan bought-out the Polka water ice cream and launched a new ice cream in the name of Walls. Although it was an unrelated pedigree 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 stiffs and banks, etc. have also proved to be successful. The philosophy asshole 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 of ambition (competitor) would get diminished and the firm could smoothly advance with the business acquired. However, two basic questions need to be addressed before acquisitionLam, T. & Lao, T. (2010) under the mental hospital states that, Horizontal integration should enable a firm to expand its products and existence