To grow or not to grow - The strategic plan for acquisition and integration

Abstract

The paper provides a comparison of two growth strategies for businesses, based on case studies. Both refer to organisations that have been merged into a multinational corporation that applies multiple approaches in investment proceedings. Such acquisitions result in expansion of corporate activities, nevertheless, they produce a number of social, financial and market risks for the acquired companies. The companies mentioned are based in Germany and the production is relocated to Poland and Croatia. Some of the processes are moved to these new locations while others remain within the acquiring group. Thus social aspects seem to play a significant role. The purpose of this paper is to analyse the effects of the different approaches used in the acquisition process and the implications they carry for the staff of both the acquirer and the target company. The paper presents the results of an investigation into strategic mergers and acquisitions of production companies in the context of multinational enterprises.