Why M&A's failure is a topic of key strategic relevance Dissertation

Why M&A's failure is a topic of key strategic relevance - Dissertation Example On the other hand, external factors include the actual market condition where the cross border mergers and acquisition took place, the actual market competition that happens within the industry level, and the role of government intervention through policies and regulations. Specifically the case of SAIC was unique as compared to the British Aerospace (BAe), BMW and Phoenix Consortium is because the company decided to create business alliance with MG Rover through joint-venture method rather than acquisition method. Since SAIC agreed to enter into joint-venture arrangement with MG Rover, the company (SAIC) was able to free itself from the risk of having to share MG Rover’s debt obligations. Table of Contents Executive Summary ................................................................ 2 Table of Contents .................................................................... 3 I. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5 a. Case Study Overview ............................................... 6 a.1 Historical Background of MG Rover †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 a.... .................................................. 14 III. Research Methodology †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 a. Primary Research Method †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.....†¦.. 17 a.1 Target Interviewees ........................†¦Ã¢â‚¬ ¦.. 20 a.2 Site of the Research Study †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦ 21 b. Secondary Research Method †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦......... 21 IV. Research Findings and Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 a. Internal Factors that Promotes a Failed Merger and Acquisition ............................................ 23 a.1 Unclear or Undefined Organizational Vision and Mission ..................................... 23 a.2 The Presence of Cultural Clashes Resulting to Organizational Miscommunication ..................................... 24 a.4 Lack of Business Integration ...................... 26 b. External Factors that Promotes a Failed Merger and Acquisition ............................................ 29 b.1 Market Condition ........................................ 30 b.2 Market Competition within the Industry ...... 31 b.3 Government Policies and Regulations ....... 33 V. Conclusion and Recommendations †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 36 a. Conclusion .............................................................. 36 a.1 MG Rover and the British Aerospace (BAe) . 36 a.2 MG Rover and BMW ................................... 38 a.3 MG Rover and Phoenix .............................. 41 a.4 MG Rover and SAIC ................................... 44 b. Recommendations ............................................. 44 Appendix I – Historical Timeline of MG Rover †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 47 Appendix II – Semi-Structured Interview Questionnaire †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 48 Appendix III – Reasons why BAe, BMW,