This chapter led to the final-and perhaps most valuable-aspect of this paper. Now that this article has provided recommendations on "what" rivals in the Emerging Markets must do to increase their chances of success, but rivals in emerging economics must consider many strategies in accordance with researches: Thomas, Robert, and Sabine (2009) conclude important differences exist across developing countries in terms of successful business strategies. This STX‘s case illustrates M&A could be an important strategy for corporate growth, but the firms need to consider a balance between corporate strategy and M&A strategy. In line with Harding and Rovit (2004), businesses in the current study emphasized the need for alignment between corporate strategy and M&A strategy. But some businesses lamented that they did not always link their merger and acquisition strategy with their corporate plan concluded by Jarrod McDonald, et.al., (2005), because strategic planning has long been emphasized by organizations as an important tool leading to business success (Coulthard, Howell & Clarke, 1996). Also in a study conducted by Harding and Rovit (2004) the importance of aligning corporate strategy to planning for mergers and acquisitions was examined.
In this study, STX‘ strategic rationale for M&A that creates value typically conforms to the following five recommendations: 1) improving the performance of the target company, 2) having a sound conservation strategy such as IPO, 3) creating market segments access for
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products, 4) acquiring human resources with skills or technologies as well as their care, and 5) building a vertically-integrated business structure for growth opportunity.
This case of STX shows M&A could be one of success factors: The M&A activity has to a great extent been driven by synergies and market power in the case of STX. Although many acquisitive companies do destroy shareholder value, this study illustrates STX group‘s case is one of the world‘s best performing firms, and proves acquisitive is one of the best strategies for firms growth.
In addition, STX have faithfully followed critical success factors and theories for M&A since the firm believes the main source of value addition in M&As arise from synergies so that its company that has been made in shipbuilding industry has more focused on the goal of growth through synergies and diversification rather than goals of savings others. And STX had created the greatest vertical integration from shipbuilding to shipping in order to maximize a synergy effect. This also provides further support to the M&A as one of the business strategies for corporate growth.
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