Brazos Partners and the Tri-Northern Exit Harvard Case Solution & Analysis

Brazos Partners and the Tri-Northern Exit Case Solution

Analysis of Brazos Strategy

The results determined by Brazos under the acquisition of Tri-Ed and Northern Video show that the deal was successful for the company because it had increased the level of business operations as well as cut the cost activities associated with two different operations.On the other hand,the CEO thought that it was not enough to generate the same level of profit margins, so he concluded that acquired businesses would increase the market shares by cross selling of the products.

The dual acquisition was the most successful deal for Brazos due to high demand of the security and the video products in the US as well as Canada. However,some financial advisors argued that it was risky to control the two different operations of the company.Fojtasek also determined the potential threat of these statements and concluded that these operations would be merged to perform a single entity and to perform cross selling of the products in order to increase the sales margin of both the companies.

The strategy could be changed according to the current situation of the market and internal operations, thereforeit would be appropriate to change the strategy of business if the selected market would prefer either of the products given by any of the two firms. For example, if the video products would increase its demand in Latin America, then the factor of relocation should be preferable for Brazos to shift the offices of Northern Video.Thus,according to the current strategy of Fojtasek, this situation would change the operation and location into the regions where it could generate more revenues as compared to the projected by Brazos.

The situation under Tri-Ed would be the same and cost Brazos to allow an autonomous control within a selected country. Thus,it indicates that some alternative strategy should be implemented in order to recover the potential consequences for the dual-deal.

Advantages of Dual-acquisition

After the dual-acquisition, Fojtasek found a way to increase the business expansion of both the acquired companies. First of all, he analysed the problems of over-costing due to different operations in regions, so he shifted both the operations into new long Island near to New York. The advantage was to cut the cost of operations occurred in the previous positions and to increase the level of sales by combined action.

The second strategy he implemented was the cross selling of the products, so he decided to sell the Tri-Ed products to the customers of Northern Video and vice versa. This process of selling increased the level of earnings for both the companies and to compete against the market giants.

The third strategy was to minimize the level of wages and non-core activities by reducing the level of management size and improve the operational efficiency. This could cut heavy amount of costs and to increase the shares value.

Opportunities for further improvement

The deal was successful in the post-acquisition however,certain changes were needed to improve the efficiency of operations as well as increase the demand of products. First of all, the operations should not be located in the same region because if the demand of Northern video was high in Canada thenwhy operatein the US. The advantage would be to deduct the price level if headquarters would be in the same region.

The other opportunities would be to increase the product diversification by allowing the acquired companies to connect with the local distributers in order to supply more goods within a region. On the other hand,the management size should be reduced and divide into different teams of each department to improve the operational efficiency.................

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