Strategy & Leadership Essay Example | Topics and Well Written Essays - 1500 words

Strategy & Leadership - Essay Example out sustained market researches and obtain appropriate information about the market key among the marketing features investigated in such researches includes the patterns of supply and demand. General Motors acquired Fisher Brothers in a strategic move that would not only increase the company’s market share but also reduce its cost of doing business as discussed in the essay below. Casadesus (1999) state that General motors formed a merger with Fisher Bodies in 1919 in order to increase coordination between two businesses. Through the merger, General Motors would obtain sufficient supply of auto bodies and innovative annual change of car models from Fisher Brothers a company that specialized in the manufacture of coach bodies. This would decrease the cost of manufacture by cutting the cost and time spent in manufacturing the bodies. In business context, a merger refers to a union between two companies that seek to mobile their resources and therefore share their profits depending on the agreement existing between the two parties. In 1919, General Motors bought 60% of Fisher Brothers implying that Fisher Brother controlled the remaining 40%. The vertical integration through the merger resulted in increased profitability owing to the production efficiency that resulted from the union of the two companies a feature that compiled General Motors to purchase the re maining 40% by 1925 thereby acquiring complete control of Fisher Brothers. The change that occurred at General Motors when the company merged with Fisher Brothers was vertical owing to the financial might that General Motors exhibited. Vertical integration implies that General Motors obtain a larger stake of Fisher Brothers at the beginning (Freeland, 2000). This way, the company retained major control of the operations at the company thus influencing production. Within the first four years the partnership, the cars manufactured by General Motors retained the emblem of Fisher Brother on their bodies.