ARCK SYSTEM

Dewi Laraswati Anggraini

29115654
Background of Arck Company

ArckSystems was a medium-sized manufacturer of

enterprise servers, which are powerful network
computers used in corporations to manage data.
Provideddata management hardware to businesses
through network servers.
Provided these servers to all sizes of businesses and
types of industries
Background of Lux Company

Leading provider of middleware

Middleware is software that acts as an
itermediatery between software application
so that they can exchange data
Arck Company Merger with Lux
Company
The reason for merger:
Enterprise software market growing quickly
Software gross margin doubled hardware
Helpbetter integrated hardware to the software
aplication
Helpobtain a greater amount of enterprise knowledge
and information to the Industry
THE DEAL
Arck moved quickly to purchase Lux Software,
making an all-stock offer which valued the company
at 50% above its market capitalization.
The deal included a delayed bonus provision
In addition, core members of Lux Softwares
engineering staff were given large stock option
grants that vested if they stayed at the company for
three years.
BUSINESS ISSUE

Theres some problems since Arck merger with Lux :

Arck and Lux sales representative have differing
selling techniques and methods (hardware and
software)
Targeting different decision makers
Differences in sales compensation plans at Arck and
Lux
SOLUTION
Restructure Sales Force
Reevaluate who we are hiring
Redefineterms of compensation, job
expectation and company policies