Critcal analysis of synergetic mergers and aquisition (case Porsche Essay

Critcal analysis of synergetic mergers and aquisition (case Porsche Volkswagen) - Essay Example The objective of the present study is to critically evaluate the synergism that ‘M & As’ in the automobile industry achieved primarily through the Review of Literature method and supplement its findings through expert interviews. The questionnaire for the interviews was evolved based on a study of the extant management literature on the subject. This researcher observed that prima facie, a large number of references in the management literature deal with the motivations, mechanics and guidelines for achieving the objectives of ‘M & As’ per se. References to the automobile industry were few and far between. A possible reason for this was apparent from a research study published by scholars in the Groningen University, which brings out the relevance of organisations’ R & D intensity to the use of ‘M & As’ as a growth strategy. It is the fond hope of this researcher that the present study ever so humbly extends the available literature on th e subject and also inspires further studies. Management literature recognises ‘M & As’ as an important corporate growth strategy when organisations reach the limits of organic growth or in the context of globalisation and opportunities available worldwide. However when management literature refers to ‘M & As’, it also includes alliances, acquisitions, mergers and takeovers with its variations like hostile takeovers. The objective of all these processes is to create a larger and financially more powerful company. Even at the global level M &As have increased in number and scale phenomenally since the 1990s. Businesses use them to consolidate in their search for scale economies, to increase their global reach and competitiveness, acquire competencies, or new technologies and convergence of services. There have been four phases of global M & As beginning with the later part of the nineteenth century and