Case Study Serba Dinamik

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SERBA DINAMIK CASE ARTICLE Serba Dinamik Sdn. Bhd. is an engineering service provider to the oil and gas and power generation sectors, with operation in domestic and overseas markets. The company has been in a business market for 24 years since 1993, and the company has its own strategic approaches to strengthen the company’s market position and competitiveness. The strategic approaches used by the company is merger and acquisition (M&A). Merger is a process of combining two or more different companies into a single corporation, while acquisition is happened when one company purchase or obtain the other company. Recently, the company is very committed in implementing this approach and plan to raise a capital within a year to facilitate M&A strategies. Serba Dinamik movement boarding on a merger and acquisition (M&A) path is considered as a good strategic sense, due to several reasons by looking at the opportunities of the company. The first reason is to form a synergy,…show more content…
The main objective of M&A by the company is to merge their power and control over the market, and also strengthen company’s competitiveness. Not only that, financial risk also can be reduced. Besides that, by sharing resources and services will results in economies of scale, which producing greater quantity products but at lower cost. As a result, the company can gain value efficiency in new entity because of cost-saving. Furthermore, it is a strategic way to gain quick access to new resources, technologies and capabilities. Therefore, the only way to succeed in executing M&A strategies is by knowing who are the persons involved, how it can be implemented and when the strategies are best implemented. The strategic plan must be done systematically, monitoring progress, evaluating performance and taking corrective action if problem

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