The Organizational Structure Of A Piece Of Music Is Its Machiavelli – The Prince – Acquisition Strategy

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Machiavelli – The Prince – Acquisition Strategy

British grocery giant Tesco selects its foreign markets based on cultural similarity to its current market. The company calls this mental distance from the parent market. The factors that make up the psychological distance are (Jody Evans, 2006) – Economic environment, legal and political environment, business practices, language and market structure. According to Tesco management, mental distance is one of the key factors that determine organizational performance. Because it is relatively easy for a company to position its products in markets with low mental distance, the learning curve for a company in these markets is relatively low compared to markets with long mental distance.

Expansion and acquisition power strategy

“Men ought to be well treated or crushed, for they cannot avenge lighter or heavier injuries; therefore injuries to men must be of such a kind that one does not fear revenge” (Machiavelli, Chapter 6)

One of the most difficult facts about the world of corporate mergers and acquisitions is that most of them fail to deliver on the value they promise. The returns for hostiles are even worse. The number one reason why mergers or acquisitions fail is that management does not recruit employees from the acquired organization to the new organization. Often times, the sword of downsizing is constantly dangling, which results in poor performance.

Management should immediately lay off those who are not needed and ensure that the others are part of the bigger scheme. According to Machiavelli, it is the duty of the leader to make tough decisions to ensure the future of the kingdom. He should take them as soon as they appear on the horizon, instead of hoping that they will be corrected. Coca Cola buys the market leader and destroys the brand, thereby focusing all its efforts on promoting Coca Cola and thereby avoiding its competitors.

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