Question

Starbucks made important acquisitions in the past two decades what would be the 5 (five) most common challenges of a successful acquisition?

Answer 1

COMMON CHALLENGES OF SUCCESSFUL ACQUISITION

1. Lack of team participation- Team participation is one of the biggest challenge for the successful acquisition because team effects the function and work of the organisation during the acquisition. Sometimes employees think that the acquisition is threat for them, and deals with retention issues. So Starbucks must have faced this situation during the aquisition.

2. Cultural challenge- Sometimes company fail to realise the cultural implication that may occur while acquisition. So the acquiring company shoul make the culture fit for everyone so that will give them assurance that acquiring the company makes sense. Culture is the long lasting implicity share values, beliefs and assumptions that influence the attitude of organisation.

3. Communication challenge- It is one of the top factor that influences the acquisition because company needs to communicate with their employees about the aquisition and about the culture which going to be change, rather than left them in the dark.

4. Agreeing on the essentials- Managers should not eliminate the uncertanity which can come after the acquisition. Instead they should focus on it and need to find the correct solution for every problems. Company can solve all the problems by separating negotiating issues.

5. Understanding the process- Understanging the process is one of the most important challenge for an organisation as the lack of knowledge regarding the process of acquisition can ruin the acquisition. Understanding the process reduces the cost of acquisition and also reduces the red tapism.