Article Analysis

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Views: 751

Words: 424

Pages: 2

Category: Business and Industry

Date Submitted: 03/01/2011 06:08 PM

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Article Analysis: Why Most Startup Acquisitions Fail – and Always Will

This article describes how most startup acquisitions fail even if they were acquired by big companies like Google or Yahoo. The reason why they fail to have an impact is because large companies do not have “the institutional know- how or the internal DNA to take advantage of them” (citation). The large infrastructure that needs to be aligned together leads to acquisitions failing. Large companies are hoping that the founder of the acquisition can make the transition to working with them not alone like before. These acquisitions can lead to big things as well but majority of the time that doesn’t happen.

Relation to Class Concepts:

This article relates to class the same as the sample case on D2L. The SWOT analysis could be implemented here. Companies need to know what opportunities are out there and how they can get them. Failing to do so could do harm to the company or giving up potential income. In this article, it seems like it concerns an S-O strategy issue. Large companies have the strength of having a sound business model which could be implemented into the acquisitions and allow them to prosper. These companies clearly have done business correctly because they are in a position to purchase companies and incorporating them into their company. The possibilities that can come from these acquisitions are huge because the idea in which they are centering their business on could be highly innovative. Finding a way to incorporating the business model of the large companies into the acquisitions without resulting in a failure is the key. If this issue is solved, large companies could make larger profits.


I found this article relatively interesting because a normal person would think that if a company acquires another company, they both should benefit. However, this is clearly...