What happens when small iconic socially oriented companies are acquired by large corporations? Such mergers create significant opportunities for the creation of both business value and significantly expanded social value, but they also unusually difficult challenges because the merging entities are often strikingly different in philosophy and operating style as well as in the scale. This article examines three examples-Ben and Jerry acquisition by Unilever, Stonyfield Farm by Groupe Danone and To … Read more »

What happens when small iconic socially oriented companies are acquired by large corporations? Such mergers create significant opportunities for the creation of both business value and significantly expanded social value, but they also unusually difficult challenges because the merging entities are often strikingly different in philosophy and operating style as well as in the scale. This article examines three examples-Ben and Jerry acquisition by Unilever, Stonyfield Farm by Groupe Danone, and Tom’s of Maine by Colgate to determine what is distinctive about the merger and procedures to analyze the elements crucial for success. The article gives tips on how other companies considering similar arrangements could best manage the process of courtship, development agreements and construction effectively within the newly merged company.
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from
James E. Austin,
Herman Leonard B
Source: California Management Review
27 pages.
Release Date: 1 November 2008. Prod #: CMR411-PDF-ENG
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