1. Why did Sainsbury bid for Argos?

2. With reference to the post-acquisition integration matrix (see Figure 11.3) consider how Sainsbury might best integrate Argos?

3. With reference to the €˜buy, ally or DIY€™ matrix (see Figure 11.6) consider whether the acquisition of Argos is the best strategy for Sainsbury?

Figure 11.3

Figure 11.6

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Acquired firm level of autonomy Low High Low Intensive care Preservation Know ledge transfer Re-orientation Absorption Symbiosis High Buy Ally DIY High Fast Fast Slow urgency Share Failures Failures losses High uncertainty potentially saleable likely and retain unsaleable buy option Soft Culture and Culture Cultural capabilities important valuation and control consistency problems problems Highly modular Avoid buying whole Ally just with Develop in new venture relevant capabilities company unit partner unit