HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeISS acquisition strategy (C): 2008back to Strategy

Case Study

ISS acquisition strategy (C): 2008

By James E. Henderson and Polina Bochukova

11 pages

April 2012

Order this case study

Reference: IMD-3-2284

This case is about driving a serial acquisition strategy – a 10 year journey for ISS, one of the largest integrated facilities services companies in the world. Through its 600 acquisitions over 10 years, the company transformed from being a Nordic cleaning company to a global powerhouse in integrated facilities services offering what the company calls ‘the full house’ of services including: cleaning, catering, security, office support and landscape services. Case (C) describes ISS in 2008 just after the financial crisis, with a new executive team facing a decision on whether or not to continue on with the acquisition path they had being pursuing over the previous 10 years. The case describes in details the arguments for and the arguments against continuing on the acquisition path.

Learning Objective

Overall the learning objectives are threefold: 1) Determining the nature and organization scope of acquisition programs; 2) Recognizing the different approaches to acquisition integration depending on the strategic overlap with the existing business and need for cultural autonomy; 3) Recognizing when to stop acquisition programs as they can quickly take a life of their own.

Keywords

Mergers and Acquisitions, Acquisition Integration

Settings

World/global
ISS
2008

Type

Field Research

Available Languages

English

Related material

Video

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

ISS acquisition strategy (A): 2000
ISS acquisition strategy (B): 2007
ISS acquisition strategy (C): 2008

This case study is part of a series

ISS acquisition strategy (A): 2000
ISS acquisition strategy (B): 2007
ISS acquisition strategy (C): 2008

Keep reading

Article

Strategic planning in volatility: The dance between agility and core strengths

Understanding your organizational capacity for agility and responding to events accordingly is the key to success in the new business environment, ...

Strategy Agility

By Michael Yaziji

in I by IMD

26 June 2024

Article

How to navigate our future world order

In a post-pandemic era shaped by wars, climate change, and new technologies, Maha Hosain Aziz outlines the main risks and shock events that could d...

Geopolitics Strategy

By Maha Hosain Aziz

in I by IMD

24 June 2024

Case Study

How Boeing lost altitude

The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight....

Board Corporate Governance Leadership Strategy

By Goutam Challagalla, Patrick Reinmoeller and Samaja Penumaka

Article

Ringing the changes: Vodafone ‘insider' makes some tough calls as CEO [Video]

Margherita Della Valle tells IMD President Jean-François Manzoni how she is delivering radical change to reenergize Vodafone and paving the way for...

Leadership Strategy

By Jean-François Manzoni

in I by IMD

18 June 2024

Case Study

Metalshub: A steely approach to launching a B2B metal trading platform

Few Business to Business (B2B) marketplaces have succeeded. Metalshub has successfully combined a software platform as a service, with a marketplac...

Business to Business Digital Disruption Economics Operations Strategy

By Didier Bonnet, Geoffrey G. Parker, Charles E. Hutchinson and Lisa Simone Duke

Case Study

Contabilizei: Freeing entrepreneurs from Brazil’s tax complexity

The case focuses on Contabilizei, a Brazilian startup providing online accounting services for small and medium-sized enterprises (SMEs). The case ...

Entrepreneurship Business to Business Digital Strategy

By Benoit F. Leleux, Diego Dias, Ariella Pfenninger, Daniel Töller and Thomas Villiger

Article

Ipsen: Leveraging an encompassing strategy to accelerate growth in pharma

IMD's Niccolò Pisani examines how a combination of clear-eyed analysis and a strong sense of purpose allowed the French biopharma to change course.

Leadership Strategy Decision Making

By Niccolò Pisani

in I by IMD

11 June 2024

Article

Engineer your own luck

Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...

Organizational Change Disruption Strategy Innovation

By Mark J. Greeven, Howard H. Yu and Jialu Shan

in MIT Sloan Management Review

Summer 2024, vol. 65, no. 4

Article

Why Chinese companies are betting big on the Euro 24 tournament

Leading Chinese companies are preparing to take advantage of exposure and opportunities as top sponsors and suppliers to the UEFA EURO 2024 Men’s S...

Competitiveness Innovation Strategy China Future Readiness Marketing

By Mark J. Greeven and Howard H. Yu

in I by IMD

5 June 2024

How Boeing lost altitude

By Goutam Challagalla Patrick Reinmoeller and Samaja Penumaka
Case reference: IMD-7-2588 ©2024

Summary

The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight. It traces Boeing’s trajectory since the McDonnell Douglas merger in 1997, highlighting the changes in the engineering culture and outsourcing strategy that affected the production quality of the 787 Dreamliner and the 737 MAX aircraft. The case also explores how leadership decisions prioritized cost-cutting over quality, leading to inconsistencies and delays. Then the case discusses the 737 MAX, which was grounded after two major crashes in 2018 and 2019. Investigations by the Federal Aviation Administration (FAA), the Department of Justice and a Senate Committee found defects in the MCAS flight control system and flaws in the safety certification. The case study explores the leadership actions of CEOs McNerney, Muilenburg and Calhoun, who decisively shaped the nature of the company.

Reference IMD-7-2588

Organization Boeing

Industry Travel and Leisure, Airlines and Aviation

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Corporate Governance

Leadership

Strategy

Browse all topics

UrbanLuxe Cosmetics: Embracing S&OP/IBP

By Ralf W. Seifert and Richard Markoff
Case reference: IMD-7-2572 ©2024

Summary

The case is seen through the eyes of the newly appointed supply chain director at a cosmetics company based in Berlin. The general manager has tasked the new supply chain director to provide bold process recommendations to improve the poor service, high inventory and rampant use of overtime. To understand the issues at play, the supply chain director meets with the CFO, the factory manager, the chief procurement officer and chief revenue officer and their feedback constitutes the body of the case. Each individual offers a different perspective, though none take any responsibility. The CFO is unhappy with the high inventory levels. The factory manager feels helpless in the situation. The chief procurement officer is proud of the savings he has generated by shifting to Asia. The chief revenue officer appears altogether disinterested and not concerned by the problem. The supply chain director must integrate this feedback and propose a new process that will address the performance shortcomings, define the roles and responsibilities of each, along with KPIs to monitor progress.

Reference IMD-7-2572

Organization UrbanLuxe Cosmetics (Invented name)

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Operations

Strategy

Browse all topics

Metalshub: A steely approach to launching a B2B metal trading platform

By Didier Bonnet Geoffrey G. Parker Charles E. Hutchinson and Lisa Simone Duke
Case reference: IMD-7-2457 ©2024

Summary

Few Business to Business (B2B) marketplaces have succeeded. Metalshub has successfully combined a software platform as a service, with a marketplace matching supply and demand for raw materials used in the Metals and Mining industries. Through innovative pricing and business models, the company has managed to scale its operations in a short timeframe.

Reference IMD-7-2457

Organization Metalshub

Industry Materials, Metals and Mining

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Business to Business

Digital

Disruption

Economics

Operations

Strategy

Browse all topics

Contabilizei: Freeing entrepreneurs from Brazil’s tax complexity

By Benoit F. Leleux Diego Dias Ariella Pfenninger Daniel Töller and Thomas Villiger
Case reference: IMD-7-2546 ©2024

Summary

The case focuses on Contabilizei, a Brazilian startup providing online accounting services for small and medium-sized enterprises (SMEs). The case study delves into the challenges faced by the company’s founder and CEO, Vitor Torres, as he navigated Brazil’s complex social and economic landscape. Issues such as Brazil’s byzantine tax system, disparate educational quality and accessibility, and the high cost of doing business in the country are explored. Despite these barriers, Contabilizei demonstrated impressive growth, transforming digital innovation into standardized services. However, the rise of competitors and persistent profitability concerns prompt Torres to thoroughly explore future strategies to maintain market leadership and improve financial performance. The case provides an in-depth analysis of Brazil’s entrepreneurial ecosystem, examining its business, educational, legal and infrastructural realities and their implications for startups as well as the difficult step for startups to become established companies.

Reference IMD-7-2546

Organization Contabilizei

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Business to Business

Digital

Strategy

Browse all topics

Ipsen: Leveraging an encompassing strategy to accelerate growth in pharma

By Niccolò Pisani
in I by IMD 11 June 2024

Summary

IMD's Niccolò Pisani examines how a combination of clear-eyed analysis and a strong sense of purpose allowed the French biopharma to change course.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Strategy

Decision Making

Browse all topics

Engineer your own luck

By Mark J. Greeven Howard H. Yu and Jialu Shan
in MIT Sloan Management Review Summer 2024, vol. 65, no. 4

Summary

Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Organizational Change

Disruption

Strategy

Innovation

Browse all topics

Why Chinese companies are betting big on the Euro 24 tournament

By Mark J. Greeven and Howard H. Yu
in I by IMD 5 June 2024

Summary

Leading Chinese companies are preparing to take advantage of exposure and opportunities as top sponsors and suppliers to the UEFA EURO 2024 Men’s S...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Competitiveness

Innovation

Strategy

China

Future Readiness

Marketing

Browse all topics