Alg Case Study

Topics: Asset, Mergers and acquisitions, Employment Pages: 3 (846 words) Published: March 3, 2013
a) ALG, prior to the appointment of the new board, had pursued an Emergent Approach Model to develop the required strategies to succeed. This approach suggests that strategy tends to emerge rather than be as a result of a logical formal process. It is evolving, continuous and incremental. With this approach, strategies may be abandoned when after implementation, management finds out that it does not inure to the benefit of the organisation and its stakeholders. A new strategy may thus be adopted to ensure that organisational goals and objectives are achieved. This Emergent approach is evidenced in the fact that it was ALG’s strategy to identify asset-rich organisations that had a negative market value and the launch a take-over bid. Also, the emergent approach becomes obvious when ALG purchased firms that needed little or no capital injection to stimulate growth and profits.

Another model that can be identified in ALG’s ‘modus operandi’ is the Freewheeling Opportunism Approach. This approach to strategy does not involve producing a formal strategy but instead, merely taking advantage of opportunities as they arise. Although this approach may seem too risky a venture for some ‘think within the box’ managers, it is a highly potent approach especially in a super-dynamic or rapidly evolving market. This approach therefore gives firms the much needed wheel to act freely as opportunists, provided it is in the interest of the firm. This approach is again obvious in ALG’s case because they not only delighted in taking over firms that were relatively cheap to purchase but also, such firms had their assets undervalued with a low asset turnover.

b) In evaluating the implications of the proposed acquisition of Starlink Technologies, it will be prudent to employ the use of a SWOT analysis.

The major strength of Starlink Tech. is that it is an amalgamation between a number of medium sized high tech. companies in Japan. This merger could be a source of...
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