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BMW’s Acquisition of The Rover Group

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The author says that since the acquisition of Rover, BMW has tried many times to enforce the competitiveness of the acquired company, but with no particular result. In this context, the gains from a particular acquisition could be strongly doubted. The Resource/ Competence Matrix presented below can help towards the identification of the role of BMW in the development of Rover Group, the gains for the latter and the policies that should be applied by BMW in order to improve the performance of Rover Group not only within its market but internationally. The acquisition of Rover from BMW has been proved a wrong decision: through the years the company’s losses were severe. Rover failed to meet the targets set by the management team of BMW (at least asset in the firm’s acquisition in 1994). In 2000 ‘Rover sold to The Phoenix Consortium and Land Rover sold to Ford. BMW keep MINI brand’ (BMW, official website, 2007)

The use of the Resource/ Competence Matrix (as presented below) in order to identify the possible competitive advantages gained from the alliances, can lead to the assumption that there has been no particular benefit for BMW from the acquisition of Rover. On the other hand, Rover has been benefited in terms that it has managed to be ‘alive’ until today. In the Resource/ Competence Matrix below the resources used in the particular acquisition and the competencies involved are being analyzed in order to understand the consequences of the above acquisition for both the firms involved. It should be noticed that in order for the data related with the two firms to be represented appropriately in the Resource/ Competence Matrix, the following issue should be taken into consideration: in the development of HR there are four factors that need to be taken into consideration: ‘culture management, strategic decision-making, fast change, and market-driven connectivity – together comprise the HR competency domain of&nbsp.Strategic Contribution’