Acquisition strategies in the plastic pipes industry - the case of Dissertation

Acquisition strategies in the plastic pipes industry - the sideslip of Wavin Group - sermon ExampleOne of the most important challenges for modern organizations has been the realisation of the strategies that can help towards the stabilization of the organizational performance either in the short or the long firm. Acquisitions have been proved an effective strategic tool for the support of a firms position in its market. However, the success of acquisitions is not forever guaranteed there is always the risk of failures especially if the relevant plans are not well designed or in case they are not effectively executed. For this reason, it would be wise for strategic managers to use acquisitions along with other strategic wefts in order to secure the stabilization (at a first level) and the maturement of a particular organization. An indicative example of such methodology is the strategic framework used by AXA (Consultancy Firm) when discourse the re-structuring of PWPipe a l eading firm in the plastic pipes industry of USA in the case of PWPipe the consultants of AXA firm to implement primarily a series of strategies for supporting the firms existing operations this was in general achieved through the update of the firms IT systems at the next level, acquisitions were used in order to becalm the firms growth (AMX International, 2011). The proposed study focuses on the use of acquisitions as strategic option by firms in the plastic pipes industry reference is particularly make to Wavin Group, a key player in the global plastic pipes industry.... h firm, aiming to increase its influence within the global market (Builders Merchant Journal, 2007, Wavin Labko, 2008) in 2010, the involution of the firm was continued through the acquisition of the Swedish firm KWH Pipe (European Plastic News, 2010). It is made clear that acquisitions has been extensively used by Wavin Group in order to improve its position in the global market in accordance with Michael D el Pero - vice president in FocalPoint Partners LLC - a lot of plastics M&A announcements were expected in the second half of 2010 because of the tax changes in USA (Esposito, 2010). However, in the case of Wavin, the tax rules cannot be considered as the only criterion for choosing acquisitions as a key strategic option taking into consideration the firms relevant activities in the last decade, as explained above. In whatever case, the plastic pipes industry is a prominent market sector in fact, in accordance with a relevant report, the specific industry is expected to advance at the fastest pace up to 2014 (Bombourg, 2010). The identification of the potentials of acquisitions to support the further growth of the particular industry would be particularly important indicating the potential encourage of the specific strategic option for firms operating in other industries which face severe pressures due to the expansion of the globalization and the recession. C. Literature Review The use of acquisitions as a strategy for achieving a continuous growth or for facing the strong market pressures has become a common phenomenon the last three decades (Hitt et al. 2009, 183). In practice, acquisitions can be described as the use of cash outflows for purchasing the net assets or billet plant, and equipment of the acquired business (Tortiorello 2008,