Business Strategies for New Parent Company's

Walden International is a foreign conglomerate, which is known for being extremely financially well-run company with an emphasis on quarterly financial results. With Walden's ability to consolidate many common functions such as accounting, legal, engineering and customer service, Able Corporation will be able to transpose those saving to their bottom line.

This is a great opportunity for Able Corporation, with being able to streamline many corporate functions, Able Corporation will be able to focus on engineering, marketing and producing their tools. Managing strategically will enable Able Corporation to develop and maintain competitive advantages. In other words, set Able Corporation apart from its competitors. As you already know, their market share of the circular saws is a dominant at 40% and having very strong brand equity and loyalty among both professionals and consumers, we will need to take advantage of this to increase market share in other areas.

Using the industrial organization (I/O) view, we can keep our focus on external forces giving Able Corporation a competitive advantage over other companies and keeping that competitive advantage. It also focuses on keeping track of what is happening within the industry and developing products to meet those needs.

The biggest disadvantage that Able Corporation will have during this transition will be the company's ability to embrace change. Having been a family owned and operating business for many years, how will top management (family members) adjust to the change of someone else calling the shots and controlling so much of the company?