Ebay

Topics: Decision making, Harvard Business School, Flipism Pages: 2 (627 words) Published: February 17, 2011
eBay was given the business opportunity to acquire Kruse International. There were several advantages and disadvantages to this business proposition (Exhibit 1) that would influence Meg Whitman’s decision regarding the acquisition.

Exhibit 1

Pros
Kruse will bring new products and users to eBay
Kruse offers a niche market of classic car collectors
Kruse has been selling cars and already have the experience eBay lacks •Kruse already has an establish car collector community
1.5 million car collectors already attend Kruse’s car events •Kruse is an elite corporation and community
It will provide eBay with increased revenue
This opportunity places eBay one step ahead of the competition •It is a globalization opportunity for eBay

In considering the Kruse International acquisition, there are several factors that would influence the decision and various ways to go about making the decision. In addition to weighing the pros and cons and performing a cost benefit analysis, Whitman would conduct extensive research regarding Kruse’s culture and profitability (Hansell). Furthermore, Whitman would hold in depth discussions with management to form opinions and gain insight and learn everything they could about Kruse. Whitman would consider alternatives and options of the acquisition as well as creating a vision and strategy for change. Whitman would also need to determine whether or not this proposition would suit the needs of eBay and its users (Clark). The time frame of the change also needs to be considered because the decision to have a radical change or incremental change would be critical to the decision making process. Finally, determining whether or not this business acquisition is feasible for eBay would be an important aspect of the decision. Meg Whitman likely adopted the rational decision making process to arrive at the decision to buy Kruse International. The rational decision making approach involves a systematic analysis of a problem...
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