Create successful international mergers and alliances: Concentrate on leadership, trust, clear objectives and living together

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

As deregulation opens up global markets, aided and abetted by ever‐swifter developments in communications technology, international mergers and cross‐border alliances have never been more popular. Companies are coming together, one way or another, to realize emerging commercial opportunities. Research by Booz‐Allen and Hamilton, for example, has indicated that more than 20,000 cross‐border alliances were formed between 1996 and 2003. At the same time acquisitions are growing in size – the record in 2003 was the Bank of America's $47 billion acquisition of Fleet Boston. Yet 75 percent of mergers are considered failures, and there are many obvious and hidden traps for the naïve alliance partner.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2006), "Create successful international mergers and alliances: Concentrate on leadership, trust, clear objectives and living together", Strategic Direction, Vol. 22 No. 1, pp. 25-28. https://doi.org/10.1108/02580540610635915