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To: BeachBum who wrote (21992)3/16/1998 12:45:00 PM
From: Loki  Respond to of 97611
 
Bill...Please allow me to add something...

<The purchase of Radio Shack by CPQ is interesting.>

Yesterday's comments concerning a future CPQ acquisition of
Radio Shack (TAN) or AMD. I believe the author to have
forgotten "<ggg>" after each one.

"In any merger or acquisition the strategy follows the simple rule.
WHY? how does it add value ?

Below are some simple steps to follow in the assessment of the above statements.

Reason for change:
1.We will be better off than before the decision
2.We will be worse off if we don't make the decision.

Considerations for Strategy:
1. Is environment ready for change?
2. The Strategy Itself
3. Are entities available that have strength of character
to follow through the strategy?

Steps in Determining Strategy (after goal has been determined)
1. Choose objective to meet your goal
2. Analysis of where we are presently. Define resources available (Situation Analysis)
3. Look at situation using historical trend. Are we now on upward or downward trend?
4. Brainstorm potential paths that lead from present situation to desired objective
5. Eliminate non-viable paths
6. Analyze the upside potential and downside risks
7. Finalize strategy
8. Re-asses objective. Does strategy meet objective?"

- from Loki's book on Corporate Strategy

When applying the steps above the answer is clear and simple.

Loki

(simple terms: "Why buy the cow if you get the milk for free?")



To: BeachBum who wrote (21992)3/16/1998 8:13:00 PM
From: Mike Gordon  Respond to of 97611
 
<The purchase of Radio Shack by CPQ is interesting.>

Bill, I agree with you. I hope CPQ stays with its core business with expansion into the server and related fields. RS is an excellent opportunity to enhance their reputation. This assumes that RS doesn't employ 'bait and switch' or high pressure sales tactics. I would also use this outlet as a service center.

Mike Gordon