Proposal GM acquiring Ford With the current level of globalization, the level of competition in the industry has increased as multinational companies are now able to open many branches in different parts of the world. This has resulted from removal of tariffs and liberalization of different markets. Following these changes, the acquisition of this new company will play a great role in boosting our financial capability. This will play a great role in helping our company to be more competitive in the market. In addition, the organization will have adequate funds to open up different branches in various cities in the world. This will reduce the risks and uncertainties that have been facing the organization (Sherman, 2010).
Acquisition of Ford will involve acquiring all machinery, human resource and premises etc. acquiring the human resource will play a great role in incorporating new ideas to the organization an aspect that will help the company face different challenges that are being experienced in the market. In addition, the company will benefit with a new culture thereby change the old existing culture of dependence on leaders to come up with new ideas (Sherman, 2010).
Acquisition of Ford will expand the source of revenue. The two companies will expand the level of production an aspect that will help the company position itself strategically in the market. In addition, the company will have enough personnel to distribute and maintain a close relationship with the customer. Lastly, acquisition of the new company will diversify the market. This move will play a great role for the company to segment the market by using different products according to customer needs and requirements (Sherman, 2010).
Sherman, A. J. (2010). Mergers and Acquisitions from A to Z. New York: AMACOM Div American Mgmt Assn.