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  • Success and Failure of M&A

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    Mittu Srikanth
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    The presentation discussed the success of the merger between Hero and Honda as well as the failure of the HP-Compaq merger. The Hero-Honda merger was successful due to Hero's engineering capabilities, brand recognition, distribution network, commitment to quality, and experience in large-scale production. The merger also benefited from initial lack of competition, proven capabilities of both companies, and increased demand for fuel efficient motorcycles. In contrast, the HP-Compaq merger failed due to issues like lack of communication, involvement of HR, training, loss of key employees, customers, cultural clashes, power politics, and inadequate planning.

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    The presentation discussed the success of the merger between Hero and Honda as well as the failure of the HP-Compaq merger. The Hero-Honda merger was successful due to Hero's engineering capabilities, brand recognition, distribution network, commitment to quality, and experience in large-scale production. The merger also benefited from initial lack of competition, proven capabilities of both companies, and increased demand for fuel efficient motorcycles. In contrast, the HP-Compaq merger failed due to issues like lack of communication, involvement of HR, training, loss of key employees, customers, cultural clashes, power politics, and inadequate planning.

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    24 views16 pages

    Success and Failure of M&A

    Uploaded by

    Mittu Srikanth
    The presentation discussed the success of the merger between Hero and Honda as well as the failure of the HP-Compaq merger. The Hero-Honda merger was successful due to Hero's engineering capabilities, brand recognition, distribution network, commitment to quality, and experience in large-scale production. The merger also benefited from initial lack of competition, proven capabilities of both companies, and increased demand for fuel efficient motorcycles. In contrast, the HP-Compaq merger failed due to issues like lack of communication, involvement of HR, training, loss of key employees, customers, cultural clashes, power politics, and inadequate planning.

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    Attribution Non-Commercial (BY-NC)
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    of 16

    PRESENTATION ON MERGERS & ACQUISITIONS

    Topic: Success and Failure of Merging

    Success of Merging of Hero Honda

    Hero cycle
    Established in 1956 at Ludhiana. Production capacity has increased from the initial 15 bicycles per day to 18500 bicycles per day. In 1986 entered the Guinness Books of World Records as the largest bicycle manufacturer in the world. has diversified into newer segments like Information Technology, IT Enabled Services and Financial Services.

    About Honda
    HMC initial plans called for both two-wheeler market and the electric generator market. HMC first chose Kinetic Engineering Ltd. And formed Kinetic Honda Motors Ltd. But this JV would work in field of Scooters Manufacturing. HMC came to Hero Group as the Last compromise choice for its motorcycle venture.

    REASONS FOR HONDA SELECTING THE HERO GROUP

    Its engineering capability Relevance and salience of HERO brand. Distribution network. Commitment to Quality. Know-how and experience in handling large volume production and distribution. Tight focus on financial and raw material processes. Cordial Industrial Relations.

    REASONS FOR SUCCESS The deep penetration network of hero largely benefited the sales. Absence of major competitors in initial years. Sound and proven technical capabilities of Honda and the reliability of Hero Increased market for motorcycles: Better Fuel efficiency. Change in peoples perception. Decrease in price difference with scooters

    Failure of Merging of HP Compaq

    Apart from the above mentioned reasons, given below are some more reasons which result in failed mergers: Lack of Communication Lack of Direct Involvement by Human Resources Lack of Training Loss of Key People and Talented Employees Loss of Customers Corporate Cultural Clash Power Politics Inadequate Planning

    THANK YOU Destination Reached

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