| Summary: | 碩士 === 國立臺灣大學 === 商學研究所 === 89 === Recent years, lots of company conducted an acquisition or merge to achieve the company’s growth objective. By doing so to get the synergy to increase productivity, reduce operating cost and extend to increase the shareholder’s interest. What ‘s the background of M&A decision and what strategic thinking being applied is worthwhile for doing after fact measurement and assessment to see how it works.。
What are the key successful factors of a centaury company? From study Gillette’s KSF can be told are 1) strong band equity 2) cost leadership 3) Product differential 4) Product innovation and 5) World-wide distribution channel. How of those sustainable KSFs being enlarge its effect and support any strategic actions and we can go further to analyse why and how Gillette to acquire Duracell. Hope this study to provide a good reference for a topic of diversification of company’s M & A.
There are a lots of theories and structures can be applied and considered in the process of company’s diversification, In this study the following theories and structures will be quoted and discussed 1) Growth strategy 2) Diversification strategy 3) Globalisation 4) Entry mode of diversification 5) the role of Synergy and 6) M & A strategy.
The major motive of Gillette to go for related diversification is searching for immediate 15% growth and Duracell fit preset requirement of Gillette in selecting business of a merger, such as 1) consumer product group 2) high tech product 3) global product 4) repeat-purchase product 5) growth opportunity 6) Global brand 7) compliable distribution channel.
Although the actual battery market growth in 2000 was under-expectation. Duracell only achieved 55% of planned target. Duracell has been recognized as global brand by having 40% market share.
It can be a failure case of high transaction cost incurred and low achieving rate to too optimistic prediction of Duracell merger, but it offers a good lesson for us to learn in positive side of 1) top management’s vision and mission and the application’s of growth strategy. However how to avoiding high transaction cost and having a reasonable prediction is a critical factor for successful merger. Clarified structure and strategic thinking have been defined and verified by this study. It is practical as a good reference.
For future study, it is recommended to focus on the study of the price of merger and the competitive and industrial analysis of mergered company.
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