Commercial Logic of Acquiring Mandrake Footwear Coursework

Commercial logical system of Acquiring Mandrake Footwear - Coursework ExampleThe decision to make acquisitions is taken by several companies in many parts of the world every now and then. Some of these decisions eventually proof to be springy and profitable while others turn out to be wrong decisions because they result in losses (Olsson, 2001). Fundamentally, the omen as to whether or not a particular acquisition would be beneficial depends on a number of factors. Among other things, it should be possible to evaluate the technical logic of the intended acquisition (Patra, Khatik, & Kolhe, 2003). If signals from the valuation turn out to be bright, then the acquisition could probably be beneficial. In the case of vend restless acquiring Mandrake Footwear, on that point be four major themes that can be employ in evaluating the commercial logic and viability of the acquisition. These are briefly explained below. Ready Market with existing Customer trading floor Commercially, an acquisition such as the one gear Active is seeking to undertake comes with the position whereby the acquirer has at his disposal, the ready market that the existing family had. They also have access to the existing customers of the companies that they acquired. This is an beta commercial value that purchasers can build on as competitive advantages (Roy, 1999). To Gear Active therefore, there is this major advantage in acquiring Mandrake Footwear. Already, Mandrake Footwear has been identified as a major competitor in the footwear industry. The phoner is also seemingly larger than Gear Active. This substance that Mandrake has created a very huge market base that Gear Active would only pack to build on. The acquisition would therefore be an opportunity for Gear Active to record massive intricacy over a very short period of time. Unlike what would have existed in a optical fusion case, this acquisition would make Gear Active an outright owner of the acquired footwear play along and so Gear Active would record a quantitative expansion that would more than double the size of the present enjoin company. This expansion shall be in terms of asset capital, market base and customers. Existing Popularity The popularity of a company is an burning(prenominal) commercial value that cannot be underestimated in anyway. Many companies have been able to develop their popularity to expression a competitive advantage over rivals. Without any doubt, there are companies who have continued to cash in ones chips the chart of revenue makers not because of their present performances but because of the popularity they have created for themselves over the years (Sackmann, Flamholtz, & Bullen, 1989). In the commercial market, it is possible that the popularity of a particular brand of harvest-feast would make the name of that brand stand for the product that the company manufactures. For example one of NESTLEs a cocoa drink brands named Milo is so popular in most countri es that people who want to purchase cocoa drinks from retailers actually say they are buying Milo even if they are not making specific reference to NESTLEs product. With such a side, the possibility that Milo would loss its market value is very low. The same situation applies to Mandrake and Gear Active in this instance. Clearly, the name that Mandrake has gained for its brand is enough for Gear Active to continue building on that name to its advantage. Opportunity to Access New Organizational Culture An organisations culture is an important element for determining the commercial value and predicting the future success of the company in question (Sandervang, 2000). This is because the organizational culture goes a very long way to determine how the company deals with its customers, suppliers and wholesalers. It also refers to the employee-employer relationship that would go on in the company. These dealings are also very important in determining whether or not a company would succ eed (Schmidt, Minssen, 2007). This is because they serve as helper values for which these stakeholders would choose one company over the other.