Bus 7

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twocompanies.docx

You will pick two companies (one large and one startup) that you think could have a good business partnership. One should be a fortune 500 company.

Based on the following idea, you will create a business model canvas for each company and develop a brief write-up of the kind of partnership you envision between the two and why you think they would make a good fit. 

"When business models among acquirers and targets are related, the sharing and transfer of superior resources may improve post-acquisition performance. In contrast, when business models among acquirers and targets are unrelated, internal and external identity conflicts may harm post-acquisition performance"-Sohl, 2017

The idea here is that you would sketch out the business models of two organizations and figure out if there is a good fit. This will allow you to better understand where there are potential synergies and opportunities for integration and where more differentiating factors will cause you to run into challenges.

· This is an individual assignment.

· It is approximately a 2 page write up. Answer the questions below:

· Provide a brief overview of each of the companies, including the industry and the competitive position of each and valuation of each

· Discuss the synergies between the two companies 

-Would the cultures of the companies be in sync (ex. level of innovation, level of diversity, location of headquarters, reputation of CEO, etc.)

· Analyze the business models of both companies and create and discuss how compatible the business models are for integration.

· Discuss the proposed integration strategy: alliance (non-equity or equity), merger, acquisition, joint venture, etc. and why you think this would be a good strategy

· What would be the benefit to each company of this type of partnership arrangement?