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An Analysis of Competitive Advantage Gained Due To Mergers and Acquisitions: A Case of British-American Investments Company Limited (BRITAM)

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dc.contributor.author Diwan, Njoki Irene
dc.date.accessioned 2016-03-21T08:47:22Z
dc.date.available 2016-03-21T08:47:22Z
dc.date.issued 2016
dc.identifier.uri http://erepo.usiu.ac.ke/11732/2240
dc.description A Project Proposal Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement of the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to analyze competitive advantage gained due to mergers and acquisitions: A Case of BRITAM. The study was guided by the following research questions: What are the benefits of mergers and acquisition? , What are the challenges of mergers and acquisition?, What strategies can be used to sustain mergers and acquisitions? This study made use of the descriptive research design while the populations were the managers of BRITAM. This study used the stratified random sampling technique. Stratified random sampling is a method by which the members of the homogeneous group are segmented into various separate subgroups and then random samples are picked from the subgroups. In this study the various departments within Britam formed the subgroups. This method prevented the bias of having the feedback concentrated in some few departments and therefore ensure equal distribution of the sample i.e. increase the samples statistical efficiency. This study made use of primary data. The information was collected using a structured questionnaire. Descriptive statistics such as measures of central tendency and dispersion was used to analyze the data. Inferential statistics in form of regression analysis was used to examine the relationships between variables. Data was presented in the form of figures and tables. Standard Package for Social Sciences (SPSS) and Microsoft Excel were the tools used to analyse the data. The study revealed that majority of the respondents agreed that mergers and acquisition aid firms in fast resource acquisition, mergers and acquisition can be used as a means to diversify into new markets, firms are able to learn through mergers and acquisition, organizations obtain economies of scale through mergers and acquisition, mergers and acquisition can be used as a means to distribution, risks can be reduced through mergers and acquisitions, mergers and acquisition result in innovation of new products, regulatory barriers can be avoided through mergers and acquisition, mergers and acquistions help firms to gain competitive advantage and finally mergers and acquisitions can be used as a means to ward off competition. The study further revealed that Mergers and acquisition result in control related problems, cultural differences slow down the working of mergers and acquisition, there is often lack of trust in mergers and acquisitions,poor leadership results in friction in the mergers and acquisitions, role ambiguity results in confusion in the mergers and acquisitions, incongruence of management ideologies can slow down the working of mergers and acquisitions, lack of clearly defined goals is a challenge in managing mergers and acquisitions,organizations prefer working independently instead of working as a combined force, mergers and acquisitions have led to unequal gains, mergers and acquisitions have experienced resistance to change. Finally the study revealed that the needs of the merger and acquisition partners should be mutual, strategic fit is important in sustaining mergers and acquisitions, partners need to engage in informed decision making, managers need the capability to manage mergers and acquisitions, top management involvement is necessary for the success of the mergers and acquisitions, the reputation of the partner aid in sustaining mergers and acquisition, shared risk aids in sustaining the merger and acquisitions, the mergers and acquisitions partners should have mutual trust, the mergers and acquisition partners should have cultural compatibility, there should be shared reward from the mergers and acquisitions. The study recommends that strategic alliance can be used as a market strategy which allows firms tto grow business and gain competitive advantage. The researcher further recommends that cultural differences shuld be minimized for strategic allance to operate effectively and at the same time select partners carefully as a critical success factor. The study reccommends that strategic alliances vary from organization to organization, this therefore means that each organization has an opportunity to acquire and thereby maintain a competitive advantage. The study therefore recommends possessing resources is not enough to create competitive advantage. This is because there is need for firms to be organized in order to take full advantage of resources gained from startegic alliances so as to be able to attain competitiveness.Additionally the challenges of strategic alliances vary from organization to organization, this therefore means that each organization has an opportunity to acquire and thereby maintain a competitive advantage. The study therefore recommends that the successful employment of strategies in leveraging the firm’s rare, valuable, and difficult-to-imitate resources, then such firms are likely to gain an advantage of strategic alliances over their competitors in the marketplace and thus earn higher returns. Finally the study acknowledges that indeed strategic alliances are key to competitive advantage. In this regard the study recommends that there is need to carefully manage strategic alliances in order to maintain a competitive advantage. Additionally there is need for the transfer of technology as a significant source of competitive advantage especially for firms in developing countries who have limited research and development resources. en_US
dc.publisher United States International University - Africa en_US
dc.subject Competitive Advantage en_US
dc.title An Analysis of Competitive Advantage Gained Due To Mergers and Acquisitions: A Case of British-American Investments Company Limited (BRITAM) en_US
dc.type Thesis en_US


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