Discussion: SCARLETTUTOR

Response 1:
 
Six Sins of M&A
Select two of Jack Welch’s Six M&A sins. Assume that an organization with which you are familiar committed both of them. Then, explain behaviors that the organization could employ to compensate for those errors.  
Welch’s M&A Sins to Avoid
Merging and Acquisitions have been the primary business strategies that many companies have used to penetrate further into the market and invest in the talents. Essentially, businesses resort to acquiring other businesses to eliminate direct competition and gain sustainability. 
Diversification is another reason that may propel a company to merge. Operating a business comes with a lot of unprecedented risks (Bena & 2014). As such, companies need to prepare for these uncertainties by venturing into unrelated markets to sustain business continuity in case of such risks. 
Furthermore, there is the need for growth for any business. Many organizations experience difficulties capturing new territories as they do not offer unique services that may attract the customers or lack the best marketing strategies. Therefore, merge and acquisition activity as a foundation for growth as a company may use the service of another established firm to expand further into the international markets (Tsuji, 2015). 
However, as much as this may be the best exit strategy, companies such as Home Depot may consider Welch’s two fundamental sins that they should avoid. The sins that may apply to Home depot include avoiding the” conqueror syndrome” and “eliminating business cultural differences”. 
Home Depot Company is an established company that may need to expand further into international markets such as China and other parts of the world. As such, it might want to utilize a robust marketing strategy of its merger to attract potential customers. As, such, it should integrate their marketing plan with the merger’s strategy to enhance effectiveness (Welch, 2016).    
Most companies make the mistake of wanting to control everything including using their team that might be ineffective. Therefore, utilizing the best skills of the merger can enhance success. On the other hand, companies have diverse business cultures that might cause conflicts in business operations.  
According to Welch, a company like Home Depot should carry out a background research to determine whether the merger’s business culture is similar or even better.  Defining a fitting culture helps to identify the best technologies to use and quality brands that might result in competitiveness.     
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Response 2:
 
Strategic alliances occur when two or more organizations join together to pursue mutual benefits. In the not for profit sector such alliances occur to grow and help both organization to achieve a common mission. The alliance between the organizations is to help a smaller organization to be able to continue to deliver on its mission. Such alliances are not motivated to eliminate competition but ensure the vision & mission of both companies is not compromised.
Not many alliances are formed in the not for profits because like organizations often help each other by working in collaboration. In my current organization we have had only one such strategic alliance in 50 years. The reasons for this alliance were:
1. Changing rehabilitation regulation for people with disability. This change put the organization in a difficult situation of either loosing funding or find a partner. The changes required the organization to stop sheltered workshops and develop a community inclusion program. 
2. The mission of both organization was in agreement to serve people with disabilities.
3. My organization was not providing services in that area at that time but had all the expertise.
4. Both organizations had similar structure and culture.
As both organizations had worked and collaborated together on other projects and had been successful, this acquisition made complete sense. My company acquired this company and completed the acquisition. The whole process was not difficult for both companies and employees. 
In the not for profit sector acquisitions are not  common but when they happen its a natural flow because of the collaboration between organizations.