Olympic Group Acquisition of IDEAL (Simplified Chinese version)
(11 pages of text)
Olympic Group (OG) was an Egyptian white goods giant that made products such as water heaters, fans, and cookers. In 1997, OG decided to buy IDEAL, a large state-owned white goods firm. Being a monopoly in its markets, IDEAL had a strong brand name and market share, which made it very attractive for OG. Also, the products that IDEAL produced — refrigerators and washing machines — complemented OG’s products. A year after the acquisition, OG had to deal with several issues such as integrating the employees of the two companies, boosting employees’ productivity, changing IDEAL’s brand image, and improving IDEAL’s products. Accordingly, within the next month, the CEO had to decide whether to start by changing IDEAL’s brand image or integrating the employees of the two companies. He also had to consider how and when to integrate the employees of the two companies without affecting overall performance. What methods should he use to boost the employees’ productivity, especially at IDEAL? What areas needed to be worked on in order to improve the IDEAL brand image without affecting its market share? What changes in IDEAL’s products were required to sustain its competitiveness and market share?
- To enable students to identify different issues related to acquisitions such as integrating employees, merging organizational structures and cultures, improving products, and changing outdated brand images.
- To teach students how to analyze and prioritize these issues, and then evaluate different alternatives to solve them.
- To enable students to apply marketing concepts such as SWOT analysis, marketing mix, and branding.
- To teach students to apply human resources concepts such as recruitment, lay-off, salaries, training, and promotions.
Egypt, Large, 1998
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