Mergers and Acquisitions of Growth Strategy †MyAssignmenthelp.com

Question: Discuss about the Mergers and Acquisitions of Growth Strategy. Answer: Introduction: The Designer Classic Carpet has medium and high quality wool carpets which meet special customer needs. In terms of production capability, it works with dealers and also directly with customers. It has the capability to deliver custom sample within ten to fourteen days, which is regarded as faster rate. The manufacturing plant is strategically located to potential buyers. One of the challenges is that it does not have string brand recognition. There was also high turnover rate. Another challenge is financial constraints due to the need to finance the various initiatives. Being the only manufacturer of woven wool carpets, acquisition of Elite Carpet will reduce competition. Its product is less labour intensive hence will likely reduce operation costs. It would help DCC to lower the production cost, hence lowring the price of the end products. The intiative will reduce cashflow and optimize resource utilization. This will lead to an increase in return on investment. The strategy is likely to cause the company a lot of money in setting up the importing company. It will also require employ,ent of more employees. The company will still be able to maintain its quality of wool. It will also result in synergy. Investment in WSM will also eliminate delivery challenges. DCC will acquire more raw materials such as raw fleece. It will also increase the companys share price. Jim Dunlop should acquire adjacencies since they are consistent with brand as stated by Nolop (2007). Jim Dunlop should ensure that the management of the company is well-structured to ensure success of the business and gain a competitive advantage. To ensure that the acquisition, Jim Dunlop should assess first and make sure they fill a critical gap in the market as stated by Frederiksen (2016) References Frederiksen, L. (2016). Mergers and Acquisitions as Part of Your Growth Strategy. Retrieved from https://hingemarketing.com/blog/story/mergers-and-acquisitions-as-part-of-your-growth-strategy Nolop, B. (2007). Rules to Acquire By. Harvard Business Review