Business Article Review

Topics: Strategic management, Management, Mergers and acquisitions Pages: 2 (473 words) Published: August 3, 2011
BUS4090- Strategic Management
Presented to Kamaria, K. N
By Dalton K Choge 626794
Business article Review 4
Spice World CEO takes firm to new heights with mergers
This article is all about Entrepreneur Beju Shah, CEO of Spice World Limited (SWL) and his growth Strategy for his company. His growth strategy is one of mergers and acquisitions with established brands instead of starting them from scratch. This is because of 2 reasons; one has a head start when you buy an established brand because people already know of it, no need of worrying about penetrating the market and his company already has an established elaborate distribution network so adding a new product to his distribution line is cost effective because there is no need for starting a new distribution channel. SWL deals with spices and wheat products. In year 2000 and 2009 SWL acquired Manu Grain Millers and the Roma brand respectively. In the future the company would like to get in to the ready food industry and rice processing. One of the challenges it faces is acquiring raw materials because of lack of food security in the country. Strategic Element in Article

Part of strategic management process is growth and how this growth will be achieved. This article is all about a company that has chosen mergers and acquisitions as the best way of growing. Now whenever we talk about a merger/acquisition with another firm, this is a BIG deal! This is because this is something that takes a lot of research and analyzing and ultimately it is the board and the CEO of the companies that decide. That right there is Strategic in every sense of the word. From the summary it shows you the 2 main reasons why growth via acquiring/mergers is a great way of expansion for SWL as a firm. Such decisions are decisions that can affect a firm a lot that is why it is left to the Top executives to make such decisions. Critique of article

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