The case devotes to the activity of Astra Company, the middle size Slovenian firm and overview of the complexity of takeovers. The case highlights the role of Mrs. Pirc, the CEO of Astra which is in the process of reorganization. The firm is in transition from the communist model of economy to the capitalist one. The firm has some alternatives and the key issue is to choose the appropriate one.
Three possible scenarios for strategic development of Astra Technical Store:
Scenario 1: Astra Technical Store Plc as an independent company
Scenario 2: Astra Technical Store as an initiator of integration processes
Scenario 3: A takeover of Astra Technical Store Plc
Positive takeover aspects will be reflected mainly in synergies arising from the integration processes. They can be divided into three groups: strategic synergies, financial synergies and operational synergies.
Company mergers require adequate management and control over post-merger activities, among which determining and ranging priority tasks and communication of the board with other employees are of utmost importance.
Given the differences among potential bidders should emphasize some other possible negative effects:
Author: Matjaz Primc
Institution: Faculty of Economics, University of Ljubljana
Number of pages: 13
Language: English
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