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Case Study Essay

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LEGASPI, CLIFFTON IAN M. BM 211 (Organizational Management) MBA Dr. Paraan CASE STUDY ”SHARE-A-CAR” BACKGROUND Beacon Car Rental Company, a car leasing company, just acquired a new business called VillageCar which offers car-sharing. The scenario tells about how Henry Beyer, the senior vice-president, will integrate the new business with the current. The chief marketing officer, Tony Cummings, wants to convince Henry to take a different course of action in integrating the said business since the method he wants to try already failed with the last venture which is Starr, a well-known smaller rental car chain in the southwest. He is eagerly telling Henry that car-rental and car-sharing is way …show more content…

In doing this process, it must be ensured that the integration is coordinated across functions, businesses, and regions. Second, Scope Deal is a method where the business are only integrated where they overlap, in other words, they are integrated selectively. This approach allows both entities to retain their individuality. In doing such method it is a must that both business models align where it is necessary and that they cross-fertilize their strengths. 2. In this case, at first, Henry Beyer was certain that he must fully integrate VillageCar to Beacon but after hearing his son’s opinion, he was then conflicted on what course of action he should take. Before deciding he must first consider various factors. One of the major factors he needs to look upon is the market. The market that they have is continuously evolving, the market’s outlook change along with the change in generation, a generation which likes to try different things, like different car types and models, but doesn’t want to be tied down and have commitments. But, along with this fact is another truth that portions of the market are the old generation which are accustomed with the old ways, like car-rentals. Going back on the two types of integration, namely scale deal and scope deal, and relating them with these facts might answer the question at hand. Looking in the definition of scale deal, it is a process where you integrate all the

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