BUS499 Week 6 Discussion Question Using The Internet Researc ✓ Solved

BUS499-week#6 Discussion Question Using the Internet, researc

Basing on the Internet, research acquisitions that are currently underway and choose one of these acquisitions to discuss. Based on the firms' characteristics and experiences and the reasons cited to support the acquisition, do you feel it will result in increased strategic competitiveness for the acquiring firm? Why or why not? Of the problems that affect the success of an acquisition, which one do you believe is the most critical in the global economy? Why? What should firms do to make certain that they do not experience such a problem when they use an acquisition strategy?

Paper For Above Instructions

In today’s rapidly evolving business environment, mergers and acquisitions (M&A) have emerged as pivotal strategies for firms aiming to enhance their strategic competitiveness. A current acquisition that has attracted significant attention is Microsoft’s acquisition of Activision Blizzard, announced in January 2022. This acquisition, valued at nearly $69 billion, aims to create a more robust footing in the gaming industry, especially in the face of growing competition from companies like Sony and emerging players in the metaverse. In this discussion, we will analyze the characteristics and experiences of the firms involved, the rationale behind the acquisition, the potential impact on Microsoft’s strategic competitiveness, and the critical challenges faced in global acquisitions.

Characteristics and Experiences of Microsoft and Activision Blizzard

Microsoft is a technology giant with a diverse portfolio that includes software, hardware, and cloud services. This acquisition aligns with its strategic vision to expand its gaming division, particularly in the realm of cloud gaming and virtual reality. On the other hand, Activision Blizzard is a leading game developer known for popular franchises such as Call of Duty and World of Warcraft, which have strong brand loyalty and massive user engagement. Combining its software capabilities with Activision's content could significantly enhance Microsoft’s gaming ecosystem, allowing it to capture a larger market share.

Rationale Behind the Acquisition

The primary rationale behind Microsoft's acquisition of Activision Blizzard is to not only bolster its existing gaming services but also to leverage the growing trend towards cloud gaming. By integrating Activision's popular titles into its Game Pass subscription service, Microsoft hopes to enhance value for its users while attracting new subscribers. Additionally, the acquisition serves to drive innovation within the industry, creating a synergistic effect that could potentially stimulate technical advancements in gaming technology and user engagement.

Strategic Competitiveness Post-Acquisition

In terms of strategic competitiveness, this acquisition is likely to yield positive outcomes for Microsoft. The integration of Activision Blizzard’s assets will provide Microsoft with enhanced resources, capabilities, and technologies. It could result in increased consumer loyalty, as more compelling games and experiences become available to users, thereby driving profitability. Moreover, the deeper penetration into the gaming market and the establishment of a robust online platform can provide Microsoft with a competitive edge against rivals, enabling the firm to innovate continuously and meet diverse consumer demands.

Critical Problems Affecting Acquisition Success

However, the acquisition landscape is often fraught with challenges, and the most critical issue that persists in the global economy is cultural integration. Merging two different company cultures can lead to employee dissatisfaction, reduced productivity, and ultimately, failure of the acquisition. Employees from Activision Blizzard may feel apprehensive or resistant towards Microsoft’s corporate culture, which could create friction and hinder the expected synergies. Therefore, ensuring a smooth cultural integration is paramount for the success of this acquisition.

Strategies for Successful Integration

To mitigate the risks associated with cultural integration and ensure the success of acquisition strategies, firms must adopt several proactive measures. First, thorough due diligence is essential. Companies should conduct comprehensive assessments of the target firm’s culture, operational processes, and employee sentiments. Understanding these aspects can help in anticipating integration challenges and crafting appropriate strategies.

Second, fostering open communication during the transition period is critical. Informing employees about the acquisition's goals, benefits, and their role in the new structure can help alleviate anxieties and promote engagement. Thirdly, involving employees from both companies in integration efforts can empower them and create a sense of ownership. This, in turn, will contribute to a more cohesive merger of cultures.

Additionally, investing in training and development can equip employees with the skills needed to adapt to the new organizational environment. Such initiatives signal to employees that the firm values their growth, which is instrumental in maintaining motivation and productivity.

Conclusion

In conclusion, the acquisition of Activision Blizzard by Microsoft represents a strategic move aimed at enhancing its competitiveness within the gaming industry. While the potential benefits are significant, firms must remain vigilant regarding the challenges inherent in cultural integration. By acknowledging potential problems and implementing informed strategies, companies can navigate the complexities of M&A successfully, thereby positioning themselves favorably in the competitive landscape.

References

• Choudhury, G. (2022). Microsoft and the Future of Gaming: Insights from the Activision Acquisition. Journal of Business Strategy, 43(2), 14-22.
• Fitzgerald, M. (2022). The Evolution of Gaming: Microsoft’s Strategic Acquisition of Activision Blizzard. Harvard Business Review.
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• Lee, S. (2022). Strategic Competitiveness in M&A: The Case of Microsoft and Activision. Journal of Business Research, 128, 593-601.
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