Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Topics:
Ahold; Cees van der Hoeven; Mergers & acquisitions (M&A); Six golden rules of acquisitions; US Foodservice; Velox Retail Holdings; Disco Ahold International; Vendor allowances; Pierre Everaert; Anders Moberg; Giant food stores; Autonomous growth; US mass retailer of the year; Acquisition strategy; Albert Heijn
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https://casecent.re/p/19633
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Abstract
Ahold was the largest food retailer in the Netherlands. Under Cees van der Hoeven (Hoeven) it rose to the position of the third largest food retailer in the world through acquisitions and other growth strategies. Initially Hoeven was prudent in his strategy by adhering to Ahold''s six golden principles on acquisition. But as the company became bigger he over-promised investors and in order to deliver his promise he overlooked the company''s rules and implemented his acquisition strategy too swiftly. This ultimately led to many problems including that of integrating the various acquired entities to function as one organisation. Finally he, along with some of his key executives, was forced to resign when the problems at Ahold were announced to the public. This case discusses the perils in trying to implement an acquisition strategy too swiftly. A structured assignment ''304-014-4'' is available to accompany this case.
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Abstract
Ahold was the largest food retailer in the Netherlands. Under Cees van der Hoeven (Hoeven) it rose to the position of the third largest food retailer in the world through acquisitions and other growth strategies. Initially Hoeven was prudent in his strategy by adhering to Ahold''s six golden principles on acquisition. But as the company became bigger he over-promised investors and in order to deliver his promise he overlooked the company''s rules and implemented his acquisition strategy too swiftly. This ultimately led to many problems including that of integrating the various acquired entities to function as one organisation. Finally he, along with some of his key executives, was forced to resign when the problems at Ahold were announced to the public. This case discusses the perils in trying to implement an acquisition strategy too swiftly. A structured assignment ''304-014-4'' is available to accompany this case.