Business Establishment Assignment 21.07
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Cost control – The acquisition deal will certainly require huge investment<br />
in various areas. So it is important that Suntory will control cost and<br />
eliminate excess capacity. <strong>Business</strong> areas in terms of physical and human<br />
resources not leading to effective results must be identified and evaluated<br />
for cost purpose (Robinson & Harris, 2000).<br />
Improved market share – Suntory will definitely benefit from the<br />
existing market share of Distill. It is essential for the expanded firm to<br />
maintain the brand image and reputation with the stakeholders to avoid<br />
any unwanted issues (Slack, Comtois and McCalla, 2002).<br />
Research & Development – An important success factor for Suntory<br />
will be the acquisition of human skills and abilities from Distill (Rossi &<br />
Volpin, 2004). The expanded firm can utilize this for R&D and other<br />
important business areas.<br />
Competitive advantage – It is also important for Suntory to continue<br />
maintain the competitive advantage developed by the Distill. Any lost<br />
competitive advantage would hamper the position of Suntory in present<br />
and future (Weihrich & Koontz, 2005).<br />
Combined synergies – The acquisition of Distill will enable Suntory to<br />
gain from the exclusive products and service areas owned by Distill.<br />
Efficient use of employees’ capacities – The expanded larger firm will<br />
increase the number of employees allowing the business to restructure and<br />
utilize full potential of the human force (Slack, Comtois and McCalla,<br />
2002). Existing employees of both the firms can be shuffled and placed into<br />
new groups and projects.<br />
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