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Supporting video
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Reference no. 301-186-3
Published by: Wits Business School - University of the Witwatersrand
Published in: 2001
Length: 25 minutes
Data source: Field research
Notes: File size 2.51GB. Click for more information.

Abstract

This supporting video is to accompany the case. The abstract of the case is as follows: Massmart acquired Game from McCarthy Retail in September 1998 for R755m. Unlike its own mass retailer (Dion, which had struggled since 1993), Game had great historical success and brought a bright new future to further growth of the business. But now, Massmart owned two similar businesses that were beginning to compete directly with one another. Common sense indicated that merging the two businesses was an obvious decision. Massmart had however, attempted to merge Dion and Makro just five years previously, with disastrous results. This case examines the complexities of mergers and acquisitions by comparing and contrasting Massmart's first attempt at merging Dion with Makro with their second possible attempt of merging Dion with Game. The teaching objectives are: (1) to engage students in the debate on the strategic issues relating to growth through acquisition; (2) to illustrate the differences between strategy formulation and strategy implementation; (3) to create an awareness of the conflict and energy created when two organisational cultures are brought together; and (4) to illustrate the stress of leadership in difficult circumstances.

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Abstract

This supporting video is to accompany the case. The abstract of the case is as follows: Massmart acquired Game from McCarthy Retail in September 1998 for R755m. Unlike its own mass retailer (Dion, which had struggled since 1993), Game had great historical success and brought a bright new future to further growth of the business. But now, Massmart owned two similar businesses that were beginning to compete directly with one another. Common sense indicated that merging the two businesses was an obvious decision. Massmart had however, attempted to merge Dion and Makro just five years previously, with disastrous results. This case examines the complexities of mergers and acquisitions by comparing and contrasting Massmart's first attempt at merging Dion with Makro with their second possible attempt of merging Dion with Game. The teaching objectives are: (1) to engage students in the debate on the strategic issues relating to growth through acquisition; (2) to illustrate the differences between strategy formulation and strategy implementation; (3) to create an awareness of the conflict and energy created when two organisational cultures are brought together; and (4) to illustrate the stress of leadership in difficult circumstances.

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