Assume that Starbucks has acquired Charles Chocolates. The major objectives of the acquisition are to make Charles Chocolates available in all Starbucks stores and to achieve synergies. What problems do you think might occur? What steps would you advise Starbucks’ management to take to make the acquisition successful?

Companies try to achieve synergies through acquisition but this may not always be the case. The first issue is that of the organizational structures of both companies in the given situation. Consider the supply chain management at both organizations. If there are more than a certain level of differences, the availability of Charles Chocolates at all Starbucks stores may be an issue. Starbuck also face the issues of becoming too much diversified, now playing at two pitches.

Starbuck management can take a few steps to avoid complexities in the acquisition process. Starbuck should take this acquisition as a strategic alliance. Starbuck should share its knowledge, competencies and required resources with Charles Chocolate and Charles Chocolates should do the same. The full acquisition process should be carried out in steps and scheduled over a certain period of time.