This week our group are group was quite nervous due to us being taken over, and not knowing how much it could affect us and what it meant for us as the firm being taken over. We found a lot of information about being the parent company but not a lot about what to do as the taken over firm. We decided that it would be a good idea to contact the company that took us over in order to get on the same page as to what we need to do to make the acquisition of our company mutually beneficial.
For our decisions, it was worrisome because we had finally fine-tuned our decisions so that our sales translated into profit and our performance was finally turning around so after being taken over we were unsure how much that would affect our sales and profit.
Bahai & Viguerie (2009) suggested that in order to discover and facilitate growth the market place and its performance must be scrutinised. Looking at our decisions and its results we always analysed the market and its activities to figure out where we need to adjust our own decisions and evaluate our performance in order to make the necessary changes for the better. Our sales and revenue was growing each year however so was our debt as we struggled to keep costs down. However upon further investigation into the reports and spreadsheets we discovered where our decisions weren’t translating into growth and where the potential growth existed within the marketplace. Davenport (2006) indicated that there are very few differences between competitors’ products and that differences in business processes are one of the few ways left to differentiate oneself from competition. This can be very useful for us in our new situation where we find ourselves working together with our parent company to try and find ways for each of us to grow. We will analyse and place the market under a microscope to find and hopefully capitalise on the areas of potential market growth. We are in a position to help each other succeed and with any luck increase our shareholder value.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86---96.
Davenport, T. H. (2006). Competing on analytics. Harvard Business Review, 84(1), 98--107.