Why Would Barracuda Consider Acquisition as Its Preferred Mode of Entry into Furniture?

[a] Why would Barracuda consider acquisition as its preferred mode of entry into furniture?

Barracuda considers acquisition as its preferred mode of entry into furniture to ensure the immediate market presence in the furniture business and also to emphasize on the business diversification strategy. As acquisition is the process to takes over the controlling interest of rivals, so another concern was to gain market share and competencies, from the previous successful growth was achieved primarily through acquisition gave them an experience of being successful again by expending them with appropriate strategy. Barracuda’s consideration of acquisition is also being helpful to establish a powerful brand name in the furniture segment, but not forgetting valuable knowledge, skill and experience of the employee which will transfer into Barracuda from the acquired industry. Distribution channel of the acquiesced firm is an added advantage to cut or reduce unnecessary cost for Barracuda. From the above argument it is well understood that the Barracuda considering acquisition is a beneficial steps of the company to enter into furniture.

[b] Given the history of Barracuda, what guidelines would you suggest to management regarding their acquisition strategy in the home furnishings industry?

Based on the case, Barracuda successful growth has been achieved primarily through acquisition, the company tends to let the acquired businesses run independently shows a clearer picture of the good and efficient management of Barracuda, but they have to look at both side advantage and disadvantage of the acquisition and also identify potential synergy of the company to play safe, because acquisition is takeover scheme in which the acquiring firm buys out the target firm's assets.

Even having an effective existing management, still they need to take in consideration few things like, take time to