1 Why did Sainsburys bid for Argos?

2 With reference to the post-acquisition integration matrix (see Figure 11.3) consider how Sainsburys might best integrate Argos?

3 With reference to the buy, ally or DIY decision tree (see Figure 11.6), consider whether the acquisition of Argos is the best strategy for Sainsburys?

Figure 11.3 Acquired firm level of autonomy Low High LOW Intensive care Preservation Knowledge transfer Re-orientation Absorption Symbiosis High Figure 11.6 Buy Ally DIY High urgency Fast Fast Slow High uncertainty Failures potentially saleable Share losses and retain buy option Failures likely unsaleable Soft capabilities important Culture and valuation problems Culture and control problems Cultural consistency Highly modular capabilities Avoid buying whole company Ally just with relevant partner unit Develop in new venture unit