Question

"The comparison companies frequently tried to create a breakthrough with large, misguided acquisitions. The good-to-great companies, in contrast, principally used large acquisitions after breakthrough, to accelerate momentum in an already fast-spinning flywheel." (Jim Collin's) Share an example of a business acquisition and merger, and explain if this is a misguided acquisition or one that accelerates momentum. Be sure to explain your choice and analysis of the type.

Answer 1

As far as consumers are concerned, by large mergers they are affected as follows:

Competition:

As the merger results into merging of two companies which are supplying their products to the consumers at different ways now supply the products in a freely manner without worrying about other competitors offer to the consumers.

Robust Price

Since the competition ends, thus the price also increase which ultimately affects the consumers

Quality:

It may be the case since the company has no fear of competitors thus, the quality offered of the products is sub standard

Large network:

Since two companies merge and form a large company, thus the network of both the companies also merge and result into a big network thereby resulting in cost cutting.

Large scale operations:

Since the facilities and equipments of the companies also got merged, leading to large scale operations at relatively low cost.