Although specialization is an inherent part of choice making in many organizational settings, the resulting isolation of specialists in acquisitions results in an absence of integration of their analyses. As a result, top managers often focus their attention on more simply and shortly communicated problems with strategic match somewhat than the more subtle and qualitative issues of organizational fit. Only a number of of these individuals had labored collectively earlier than, and the entire course of lasted solely six days. This instance, while excessive, highlights the issues generated when giant groups of specialists with a slender focus are thrown collectively to investigate a deal under intense time pressures. Under such conditions, individuals who have not labored closely collectively earlier than or who don’t share a typical expertise and jargon can communicate only the most standardized info shortly and effectively.
Feeling that they’ve put their popularity for sound, decisive judgment on the line by initiating the process, senior executives might hurry to complete the deal, in part to justify their earlier decision to pursue the goal. First, strategic fit points instantly mirror the espoused objective of the acquisition. Second, these issues often lend themselves to standardized analytical approaches that investment banks and consulting firms use to evaluate markets, products, industries, or technologies. Third, few channels of communication to exchange information exist among the many numerous groups of analysts who carry out their work in numerous time durations. Within a given specialty, folks have a tendency to assemble similar information and produce … Read More