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As acquisition of another business is very complex, there are many problems that can arise,
few of them are listed below:
1- Integration Problems
Not all acquisitions require extensive integration. For example, if the benefits from an
Acquisition are expected to arise from a small set of targeted activities, then the integration
Issues are usually confined to these activities, do not spread to the entire merger, and are
Usually quite manageable.
Thus in GM Daewoo integration can be a problem, which left unattended, leads to failure.
Typically, integration problem may arise because this acquisition is:
(a) Scale of the merger
(b) Complexity of the merger
(c) Speed of integration,
(d) Departure of human capital,
(e) Cultural clashes.
The first two factors – scale and complexity – are related in this case study. Complexity gets
exacerbated if the integration is comprehensive, and multiple activities of the value chains of
both firms have to be melded. The integration may also be complex by virtue of the sheer
scale of the activities that need to be integrated, even if it involves a narrowly targeted set of
activities.