Ibm and Daksh Case

1865 Words8 Pages
Prof. G. R. Beaudrie, University of Windsor | Daksh and IBM Case | Strategic Management 75-498 | | Sachin Malhotra | Summer 2010 | Keywords: Acquisitions, Business processes, Corporate strategy, Data processing, Emerging markets, Entrepreneurial finance, Entrepreneurs, Growth strategy, Industry consolidation, Industry life cycle, Industry turbulence, Outsourcing Setting: Geographic: India Industry: Information technology consulting services | In the April of 2004, IBM took over Daksh, one of India's leading BPO companies at an estimated amount of US$170 million. Daksh was quite attractive as a foreign investment due to the fact that for a foreign takeover, Daksh had it all: entrepreneurship, innovation, venture capital, wealth creation and a quick exit. Expanding on the post buy-out scenario, the case emphasizes a range of issues arising from mergers and acquisitions and provides a framework for a discussion on the various dynamic forces of acquisition integration. There are two underlying questions and concerns in this case: * Why did the soon-to-go-public Daksh had agreed to IBM’s offer of acquisition? and * What was the underlying intent of IBM in its decision of acquiring Daksh? This paper will aim to evaluate whether or not the it was a sound decision on the part of IBM to takeover Daksh, and also as to how aligned was this decision with the IBM's overall corporate strategy. PESTEL ANALYSIS: One of the best methods to assess IBM- Daksh`s external environment is to analyze the political, economic, sociocultural,
Open Document