In September of 2013 Microsoft bought Nokia's mobile business for over $7 billion. This included the acquisition
Question:
In September of 2013 Microsoft bought Nokia's mobile business for over $7 billion. This included the acquisition of most of the company's assets in Finland as well as manufacturing capacity in Asia, along with 24,000 employees. You are an independent business analyst and you have been approached by representatives of US tech giant Microsoft to look back at their acquisition of Nokia.
Microsoft’s executives are mostly interested in assessing the acquisition, benefitting from hindsight, whether the acquisition fits into Microsoft’s business model and long-term strategy, and whether the chosen integration strategy was the right one.
Address the following issues in your report:
1) Critically appraise the strategic fit of the Nokia acquisition with Microsoft’s business model and strategy. What potential benefits did Microsoft pursue? Please appraise whether these benefits were realized and the acquisition was successful or not.
2) Analyze the success of the integration of Nokia into Microsoft’s business operations. Critically appraise whether the integration strategy was appropriate and propose suggestions for improvement.
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni