Business Aquisitions Essay Example | Topics and Well Written Essays - 500 words

Business Aquisitions - Essay Example Whenever an acquisition takes place, there is a wide range of motives behind it but the three most important ones are managerial, synergy and hubristic (Du & Boetang, 2014). A detailed review of the situation highlights that CEO has made the decision for attaining synergy as it lacks few resources possessed by the foreign organization. It is even mentioned that this decision will allow it to be the market leader and such initiative will prove to be beneficial for the entire company. Moreover, it appears that there is managerial motive behind this choice because the person is expecting an increase in salary coupled with bonuses and other fringe benefits. As a result, there will be ample growth opportunities for the existing employees as they will be allowed to enhance their competence. Traditionally, the classical approaches have been followed in such type of corporate decisions. The situation at hand is in alignment with the resource-related approach as the acquiring of the foreign company will offer the firm an opportunity of employing the proficient resources available with the enterprise. The present decision is in accordance to this tactic as it will make sure that the company has access to those sources which were unavailable with the firm. Also, it will allow the resulting corporation to gain leading position within the industry. In addition to the capital sources, the company will have access to the competent management team and employees who will be able to share their international business experience.