Strategic Management for Barracuda in the Furniture Industry

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT
Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Guidelines for Acquisition Strategy of Barracuda.......................................................................3
References........................................................................................................................................6

2STRATEGIC MANAGEMENT
Answer to Question 1
After the analysis of the given landscape in the current case study, it can be stated that the
acquisition strategy can be described as the most crucial strategy for the company at the given
stage. This is because it has been observed that there are various players present in the furniture
industry at the current point of time and thus, due to this reason, it is important for the business
to acquire the best ones of them (Hitt, Ireland & Hoskisson, 2012). If the company wants to
ensure that it would like to establish itself in the furniture industry, it needs to understand that
due to the established of the previous companies, it would not be able to meet up with the current
competition and would end up converting the given venture in a loss. Hence, it is primarily
suggested that acquisition may be described as the best strategy which is available to the firm
and will enable them to expand into the given industry.
There does not existing any overcapacity or controlling problems with the United States
home furnishings firms and most of them have good managers. This is another reason why
acquisition can be stated to be a logical technique (Robson, 2015). As these managers are very
capable, they will be able to manage the companies well with the guidance of Barracuda.
The supply chains are also highly concentrated and for this reason, the company can
establish itself into the chosen industry with this market entry mode.
Some other advantages of the acquisition mode are as follows:
 It will help Barracuda to gain access to capital. When the company will take acquisition
of another company, their capital can be accessed and used accordingly.