Examples of Managers Essay

1373 WordsMar 18, 20086 Pages
The Viewer: A viewer in Merger and Acquisitions term is the organization with good foresight for expansion. It is an organization that employees responsive mechanisms that warn of the need to expand and grow. A viewer tends to be overtly ambitious and egger to take the organization to new strengths. However a viewer organization is also characterized by either lack of resources or diminishing market share. In wearing a shoe size bigger than its feet, a viewer organization lacks sound business judgment due to lack of experience, scuttle decisions or a mixture of both. This leads to a flawed merger and acquisition strategy that often leaves the door open for other bidders and a bidding war that is more often than not lost by the viewer. Other organizations with lower levels of insight but with larger and more organized resource pools take on viewers and drive them out of a bid. A viewer does not benefit from their merger and acquisition experience nor do they hardly ever manage a successful strategic acquisition. A good example of a viewer is KLM (Royal Dutch Airlines). In 1980 KLM sough the take over of troubled United Airlines in an effort to implement a revolutionary which stipulated being the transatlantic market leader. KLM wanted to utilize United hubs and market share in the US to transport passengers to Europe. KLM was hostile in the way it approached United and the American aviation market, leading to scares within the American market and brining unwarranted attention to the bid. Soon after British Airlines saw the advantages of adding a US carrier to its portfolio and managed to purchase a 32% stake in United through a negotiated deal in three months, where as KLM limited by resources had managed a 2% acquisition on the open markets. The Reflector: A reflector organization is again an organization with good foresight and opportunity seeking

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