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Volvo Group
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Volvo¡¯s strategy
Its short history
Current State of affairs in Automobile Industry
Climate Change of automobile market
Emerging Market for Construction Equipments
Its Strength
Core Competencies
Its Weakness
M&A strategy and PMI
Conclusion
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History before M&A
1927. Assar Gabrielsson and Gustav Larson
1928. The first truck, the `Series 1,¡±
1930 the export of trucks to Europe started
But, the cars did not become even well-known outside Sweden until after WWII
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History After M&A
1997. CEO, Leif Johansson inaugurated
1998. Merged Samsung Heavy Industries
Sold Mecalac, in farm machinery
1999. Sold Volvo Car Corporation to Ford
Merged Bluebird, in bus corporate
2001. Merged Renault, Mack Truck
2002. Building facilitations for overseas production
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Volvo¡¯s solution : M&A
Leif Johansson background
1997 CEO, Leif Johansson
1984-1997 Electrolux(Europe`s largest electronics manufacturers)¡¯s Vice President, CEO, and Chairman
Living Textbook in terms of M&A
Said the most Important Assets
from M&A is ¡®Human Being¡¯
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M&A strategy
Selection and Concentration
Volvo¡¯s environment
Volvo ranked 23th in the world auto mobile industry
Petty Scale of economy(Annual production : 400,000)
Even though the market is getting matured
Volvo¡¯s strategy
Focus on a market with high growth potential
It founds Trucks and heavy equipments industries in emerging market shows high growth rate
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M&A strategy
PMI(Post-Merger Integrational)
Even though the M&A is the current new trend,
M&A`s success rate is less than 50%.
Failure`s reason -` No PMI
Maybe uncertain of M&A`s synergy effect
Possibly High Acquisition Premium
But majorly due to no plan for PMI
But Volvo considered
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