With reference to the item on telecoms and your own research, to what extent do you think that leadership is the main factor influencing the success of takeovers and mergers?
Leardership is influencing and directing the performance of a group members towards achieving the goals of the organisation.
Leadership is the main factor influencing the success of takeovers and mergers because Staff who has strong leadership skills will motivate and insipre other employees to achieve the goals and objectives of the firm. This is well illustrated in the acquisition made by Kellogg’s. One of the key factors influencing the succes of Kellogg’s severals acqusition, was The CEO John a Bryant’s leadership skills as, he held direct responsibility for
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However, there are other factors than leadership that influence the success of takeovers and mergers such as the type of integration in which the merger of takeover occurs. The Motorola handset maker’s takeover by Google in 2012 is a great example, which exemplify that. Telecom and multimedia merge, so do the companies that provide these products, this are forward vertical integrations as these companies are in the same industry but the customer’s merger with the business. The takeover will give Google access to the intellectual property that Motorola has thought patents. This will provide future income and a basis for new product development as the firm will is Android operating system in Motorola handset. This means will influence the success of the takeover as the two firms come from the same industry that they know which facilitates the integrations and safe times in the short term. Furthermore, Google are able to use the technology from Motorola to become more competitive and produce new products in the market, which is product development according to the Boston Matrix. This should make the company growth externally and therefore produce, in the long-term revenue synergies. This point is amplified by the Microsoft’s partnership