Network Acquisition - Essay Example

Network Acquisition affiliation Network Acquisition Network acquisition occurs when a company merges with or is taken over by another it accepts to collaborate with another. An example of network acquisition would be Google and other companies. It is a case where the company has bought another company and thus there is a need to merge or integrate the company’s network with the existing one. In this case, our company being the dominant partner in the merger has control over the IT merger process and consequently a great advantage over the business and political decisions.

Project acquisition is in itself a specific and crucial process when working with the public entities. Therefore, for successful network acquisition, Veil (2010) asserts that one has to understand completely whether the legal name and the web presence of the company when merged. The effects of geographical distance and the inter-organizational networks on the acquisition strategies in these high technology industries will be examined via an analysis of mergers and acquisitions that occurred in the computer networking industry during the 1990s.

It is during this period that the said industry encountered massive growth of entrants, innovative products, and the VC investments. The Cisco Systems, which has a dominant presence in the networking industry, acquired over 70 firms. It is, therefore, the biggest public company in terms of market capitalization (Yurov, 2008).For any successful acquisition, it is important to carry out a background check. As such, with every IT venture, customer retention and innovation would be the ultimate strength.

However, threats such as the eminent rise of other companies would rise. The company’s biggest weakness would be the replication of efforts and subsequent failure brought stemming from a weak organizational structure, and poor decision making. Management experts are employed in order to achieve the company’s prosperity. While it is a merger, there’s the possibility of restructuring because of the centralization of the business. In such a state, it is instrumental to carry out hypothesis testing or questionnaires to help the management run simulations on the possible performance of the organization.

What Factors should be considered in Network Acquisition?Precaution has to be highlighted to avoid acquiring projects that are similar in size and competence. A more realistic concept would be to focus the acquisition activities strongly on projects involving more companies to create economies of scale. Online marketing is good when the websites of the individual companies are either merged or partnered with (Veil, 2010). Considering financial requirements, as a client, look for the bidder that is much likely to remain in business over the time of the acquisition.

It was found out that a potential client will need to be evaluated in terms of size, turnover, and the existence of the audit certificates.In any acquisition, a firm can gain resources such as material, physical and human capital that will eventually aid in the implementation of the project, innovation, finance, or access to the markets, but should ensure that they steer away from those that promote substitution and imitation. It is also vital that these resources are employed not only for complementary purposes but also to bring about cost minimization and product/profit optimization especially where proxy for inter-organizational networks (Yurov, 2008).

Economies of scale, economies of scope and intellectual properties are the most important resources in any network acquisition project. It is because they provide a background on how the strategic objectives would be taken to an ever growing and dynamic world. It also opens the discussion of either adopting an institutional or contractual governance of the acquisition in a bid to reduce the transaction costs. ReferencesYurov, M. K (2008). The roles of geographic distance and networks in the acquisition strategies of high technology firms.

New York: NY. Oxford University Press, OUP.Veil, G. (2010). Improvement of the process of project acquisition in network of consulting companies. Chicago: Chicago Press.