Content : MCP3

Merger and Acquisition

Decision Making
Creativity

Mergers and
Acquisitions?

Responsibility ?

Both are
Efficacious

Merge/Acquisition
?

Merger types

1. Horizontal Merger- when two or more

companies that product the same kind of
product join forces.
2. Vertical merger- when two or more firms that
are at different steps of manufacturing process
join together.
3. Conglomerates- is a firm that has at least four
businesses, each making unrelated products.

3
1
2
.

Conglomerat
es

Unsuccess
ful Merger
and
Acquisitio
n

Decision making

 A goal-oriented process
The end process
A human and rational

process
Functions of

DM is

Amanagement
dynamic process

A blend of
Situational

thinking

Core process of

A
continuous or ongoing
Deciding

planning

process

Acting
Universal problem

Implies freedom to the

decision maker

May be positive or negative

Gives happiness to an

Risk (each alternatives)

Identification
of problem
Economy
of efforts (cost,
time and
Present
desired state of
efforts)
Best and
alternative
and
analysis
the
affairs
TimingDiagnosis
or
situation
(urgent)
Each alternative
compared Well
defined
problem
is half
problem
Limitation
oforganizational
resources
- (physical,
objective
Understanding
solved
the problem
in relation
financial
and
HR)
Approaches
1. Experience
Continuous
to the
objectives
of the2.organization
Search
for monitor
alternatives
Experimentation
Managers
Classifying

management
report,
the problem3.and
gathering
Research
check process against
budgets,
information
4. Analysis
Evaluation
ofresults
alternatives
Find
compare
the
out 1.Who
would against
make decision ?
ideas
Decision
communicatedresponsible
by2.What
competitors
&
information
would be for
itsof
implementation
efficiency
of
employees
needed
?
The principle
limiting
factor
Selecting
anthe
alternatives
Acceptance
Use
imagination,
experience
and
3.From where
the
Time and cost
factors
should
be
kept
in
Procedure
and time
sequence mind
judgment
information
is
available
?
Implementation
and follow
Creative thinking
Required
resources
4.Some specialists should be
up
Decision
makers 1.Past experience
consulted
2.Practices followed by others
3.Creative techniques

Decision makingDefinitions

Choice about a course of action

-- Simon
Choice leading to a certain
desired objective
-- Churchman
Knowledge indicating the nature of
a commitment to action
-- Holsapple and Whinston

Decision Making