Microsoft & Sendit Essay

1422 Words Feb 24th, 2013 6 Pages
1. Which integration approach should Microsoft use to integrate Sendit: Absorption,
Symbiosis or Preservation? (use Haspeslagh and Jemison's reading from last session)

Conclusion : As we reviewed aspects which this acquisition had, we concluded that MS should choose Symbiosis approach rather than Absorption. It is based on analysis of the purpose of acquisition, the level of strategic interdependence need and the level of organizational autonomy need.

1) Analysis 1. Through the view point of purpose of Acquisition :
We analyzed the purpose of this acquisition as “Domain Extension”. Since the main reasons why MS attempted this acquisition were extension of product line which MS had been criticized that too much PC oriented and
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For examples, Long physical distance between MS HQ and Sendit’s and different corporate culture which had been customized for each organizations. Since those aspects actually create severe problems, we assumed it was essential to provide autonomy to acquired company.
Secondly, we analyzed the area which the autonomy needed. Normally, R&D department required certain level of autonomy and functional department such as marketing or sales could be the target of integration. However in this case, the situation was little bit different. If we considering that MS didn’t have enough understanding about Sendit’s business and the difficulties from cultural difference and geographical distance, Marketing department should be allowed much higher level of autonomy. On the contrary, although there might be some need of autonomy for R&D, the benefit from integration seems much higher than that. For examples, the members of Sendit’s R&D were not mainly suffered from disruption of MS colleagues but from unbalanced power between the company’s marketing and R&D department. And it was quiet clear that there were lots of synergy from co-operation between R&D side of both companies.
Finally, we assumed that how much level of autonomy should provide to the marketing department, Since the risk of losing chances of new

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