Aquisition in a multinational enterprise

Ing. Luvo Sigonyela

Master's thesis

Abstract:

The post-acquisition changes in organisational structures of Multinational Enterprises (MNEs) has been a widely-researched subject for some time. There is an extensive literature documenting poor post-acquisition returns, and this poor performance is primarily attributed to the inability of enterprises to successfully develop an integrated organisational structure that will be effective for the future of the acquiring enterprise. Despite the challenges, there has been a rapid growth in acquisitions over the last couple of years. In order to fully understand this phenomenon, this thesis aims to analyse an acquisition by an MNE. The study critically assesses the acquisition focusing specifically on changes that have occurred in the organisational structure of the firm and later providing recommendations. A case study of the acquisitions performed by Sika CZ, an MNE operating in Brno, Czech Republic, was formulated. In-depth interviews and documents were utilised as primary sources of evidence to accomplish a qualitative analysis of the acquisition process. The results were interpreted in order to create an understanding of the studied phenomenon. The thesis highlighted the significance of going beyond the strategic fit considerations before completing an acquisition. It was found that it is significant for the company structure to evolve as the company evolves. Moreover, the thesis discovered that a sound organisational structure plays a central role in the success of the integration process. However, the researched company did not have an official organisational chart. Therefore, a recommended structure was developed for the firm.

Keywords

Multinational Enterprise (MNE), Acquisition, Organisational Structure, Integration

Language used: English

Date on which the thesis was submitted / produced: 29. 5. 2017

Thesis defence

• Date of defence: 22. 6. 2017
• Supervisor: Ing. Bc. Sylva Žáková Talpová, Ph.D.
• Reader: doc. Ing. Petr Pirožek, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Economy and Management / Business Management (Eng.)