Almost all firms share certain value chain activities. For example, most firms have a centralized finance and

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Almost all firms share certain value chain activities. For example, most firms have a centralized finance and accounting department, a procurement, an MIS and an HR function.

Given this fact, two firms from unrelated industries are planning to merge simply to combine their overhead functions, which constitute a large fraction (e.g., > 40%)

of their individual cost basis. Is the logic sound? Why or why not?

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Related Book For  book-img-for-question

Strategic Management And Competitive Advantage

ISBN: 978-0133823929

5th Edition

Authors: Jay B. Barney ,William S. Hesterly

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