Superior M&A Case Method

Understanding Cases Superior M&A Case Method

10 comments

Candidates approach M&A cases with a very generic framework where M&A and JV’s tend to be lumped together. This podcast demonstrates the power of effectively framing the case problem and introduces candidates to a very elegant / effective technique to develop strategies to capture the profits from a market. In fact, this technique demonstrates why an M&A is the absolute last resort to enter a market.

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10 responses to Superior M&A Case Method

  1. Ignore the repeat post Michael. For some reason the page gave me an error that it was unable to post.

  2. Thanks Michael for the prompt response. My conclusion was derived from this source which confused me. From the definition in the article it sounded OEM was outsourcing.
    http://www.asiaqualityfocus.com/blog/oem-and-odm-suppliers/

    Thanks for the clarification Michael.

    Regards,
    KSK

  3. Hi Krishna,

    I understand. The terms are new and widely confused, though the principles have been around for a long time in business.

    Michael

  4. Thanks Michael for the prompt response. My conclusion was derived from this source which confused me. From the definition in the article it sounded OEM was outsourcing.
    http://www.asiaqualityfocus.com/blog/oem-and-odm-suppliers/

    Thanks for the clarification Michael.

    Regards,
    Krishna

  5. Hi Krishna,

    ODM is the same as white label. Companies doing this may be called OEMs.

    Outsourcing is not ODM.

    ODM/White Labelling is when the manufacturer owns the IP, and provides the finished goods to the client.

    Outsourcing is when the manufacturer receives the IP, and provides the finished good to the client.

    Licensing is then a company hands over the designs to another for a royalty.

    Michael

  6. Hi Michael,

    Quick clarification question, the outsourcing option is an example of French company being an OEM and in the white label option is an example of the French company being an ODM, right?

    Thanks!

    Regards,
    Krishna

  7. Hi Roshan,

    Here are the authors original papers, these are still working their way into the major business schools…

    Tzeng, C-H, Beamish, P.W., Chen, S-F., 2011, “Institutions and entrepreneurship development: High-technology indigenous firms in China and Taiwan”, Asia Pacific Journal of Management, 28 (3): 453-481.

    Chen, S-F., 2010, “A General TCE Model of International Business Institutions: Market Failure and Reciprocity,” Journal of International Business Studies, 41 (6): 935-959.

    Chen, S-F., 2010, “Transaction Cost Implication of Private Branding and Empirical Evidence,” Strategic Management Journal, 31: 371-389.

    Chen, S-F., 2009, “A Transaction Cost Rationale for Private Branding and Its Implication for the Choice of Domestic vs. Offshore Sourcing,” Journal of International Business Studies, 40 (1): 156-175.

    Chen, S-F., 2008, “The Motives for International Acquisitions: Capability Procurements, Strategic Considerations, and the Role of Ownership Structures,”Journal of International Business Studies, 39 (3): 454-471.

    Chen, S-F., 2005, “Extending Internalization Theory: A New Perspective on International Technology Transfer and Its Generalization,” Journal of International Business Studies, 36 (2): 231-245.

    Chen, S-F., Hennart, J-F., 2004, “A Hostage Theory of Joint Ventures: Why Do Japanese Investors Choose Partial over Full Acquisitions to Enter the United States,” Journal of Business Research, 57 (10): 1126-1134.

    Chen, S-F., Zeng, M., 2004, “Japanese Investors’ Choice of Acquisitions vs. Startups in the US: The Role of Reputation Barriers and Advertising Outlays,”International Journal of Research in Marketing, 21 (2) 123-136.

    Chen, S-F., Hennart, J-F., 2002, “Japanese Investors’ Choice of Joint Ventures versus Wholly Owned Subsidiaries: The Role of Market Barriers and Firm Capabilities,” Journal of International Business Studies, 33 (1) 1-18.

  8. Very interesting.
    Can you recommend any article that delves deeper into these three areas and their respective business implications?

  9. You may. Thanks Davor. The principle still stands though. License technology at your peril.

    Though, when I meant Russia I was loosely referring to the Former Eastern Bloc countries. I should not do that. It can offend many people.

    Michael

  10. Very creative and insightful.

    May I correct you…
    In 1970’s Fiat didn’t license some company in Russia to produce and all cars coming from Russia were looking as fiat. They licensed a company in “former” Yugoslavia to produce fiat 500, car that was locally called “Ficho”. Even the worst car ever “Yugo” (the one from Die Hard 2, when Bruce Willis says negative comment about it) was made on that basis.

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