MA in Management - Strategic Analysis Module Re-sit Exam 1999/2000
Case Study – Electrolux: the acquisition and integration of Zanussi.
Case study (without questions) to be handed to students prior to the examination.
The examination will have an “open book” format, with students able to take relevant
material into the examination room – up to four A4 pages of case analysis notes
prepared by the student and an annotated copy of the case study. All material taken
into the examination room must be appended to the examination paper.
Only material written in the official exam answer books will be assessed. However,
the examiner’s attention can be drawn to specific material appended to the answer
where, in the opinion of the student, this material will underpin the answer given.
Examination questions to be unseen until the examination.
Examination Paper
Answer all questions – maximum marks indicated for each question.
1. Using relevant tools and models, identify and contrast the strategic capabilities of
Electrolux and Zanussi prior to the acquisition in 1984.
(40 marks)
2. Identify the main external strategic challenges facing Electrolux/Zanussi in 1984.
Assess the extent to which the strategic capabilities built by the company
following the acquisition addressed these challenges in order to gain sustainable
competitive advantage.
(30 marks)
3. Use relevant frameworks to critically assess the pre and post acquisition activities
of Electrolux. To what extent did these activities allow the company to avoid the
problems of the “synergy trap” encountered by many companies when they
attempt to develop through acquisitions?
(30 marks)
Guide to External Examiner
1. This answer should clearly identify the strategic capabilities of both companies
and contrast the differing areas of relative strengths/weaknesses. Students will
need to demonstrate an awareness of relevant tools and models such as value
chain analysis, resource analysis and even SWOT analysis. In particular, they
should show an awareness of how the resource base (tangible and intangible) and
functional competencies of each organisation contribute to overall strategic
capabilities.
2. Answers to this question need to identify the key external challenges facing the
organisation, particularly the perceived trend within the white goods industry
towards globalisation. Students need to demonstrate awareness of how such
challenges affect strategic priorities and the sources of competitive advantage –
for example, the need to build global brands whilst recognising county by country
differences and achieving global economies of scale, particularly in components.
This should lead to a discussion of key strategic capabilities in areas such as
international marketing, product design and component manufacture/sourcing.
Discussion of how to achieve/manage synergy in the new organisation could be
mentioned here.
3. Students should be aware of Sirower’s work on the “synergy trap” and how this
can be addressed through consideration of strategic vision, operating strategy,
systems integration and consideration of the power/culture infrastructure.
Students may well use frameworks like the cultural web and stakeholder mapping
to explain how some of the “softer” issues are addressed, alongside changes to
organisational structures and the integration of manufacturing and marketing.
Some stress should be placed on the way in which Electrolux managed the whole
acquisition process both prior to and following the deal.