Question

Garrett is an executive vice president at Samm Hardware. He researches a proposal by a larger company, Maximum Hardware, to combine the two companies. By analyzing past performance, conducting focus groups, and interviewing Maximum employees, Garrett concludes that Maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. What actions should Garrett and Samm Hardware take?

Answer 1

Attempt a friendly merger and use a managerial hubris to improve results at maximum.

Step-by-step explanation:

When acquiring a company, there are relevant issues that need to be addressed for the merger process to be user friendly. It is essential that there is transparency of executives who have acquired a new company, ie, the acquisition process must be mutually agreed, with mutual cooperation between the parties involved in the process, so that there is a friendly acquisition, the results of which are viewed positively. by both parties.

Managerial hubris is also a strategy that can be used to improve the results of the acquired company because it acts as a belief and perspective that the resources of a acquired company can be managed more effectively than former management. .