The need bring financial and customer synergies the business

Plastic Compounders: These are the ones preparing plastic formulations by mixing and blending the polymers and additives into pellets that are ready for processes.

Plastic machinery manufacturers: These are the ones that manufacturer the machinery used in the industry and BITA is one of them.

ANALYSIS OF STRATEGIC ALIGNMENTS OF BIT

Alignment between BIT and its business units

Considering the strategic alignment between BIT and Plastik GmbH we can find that the alignment has brought several benefits as well challenges. The major challenges relate to the non-alignment between the business units and the newly formed company and the lack of interface between BITA and Plastik’s global knowledge base. These deficiencies are resulting in lack of information and proper data for Plastik and BITA giving rise to inefficient decisions. It is to be noted that technology can play a vital part in business because of its feature of integration that helps in coordinating the effective operations, management information and financial reporting (Sabherwal and Chan, 2001). It is necessary to incorporate IT as a major component of operating and capital expenditure so as to extract value from the process of mergers and acquisitions (Henderson and Venkatraman, 1993). BITA and Plastik lacks this incorporation of IT in an efficient manner because of which the company lacks the availability of critical information for supporting all aspects of business transactions including financial integration people alignment and tracking and reporting benefits that are key to any merger or acquisition. It is to be noted that tracking of benefits and realization are the top priorities of the CEO and CIO of the newly formed organization as it helps in ensuring that the stakeholders of the new organization are able to derive the benefits and the value as expected by them (Kaplan and Norton, 2006). Hence the dual role of IT is to be considered as seen as a holistic part of any merger or acquisition. This consideration is lacking in the alignment between BITA and Plastik giving rise to several operational, financial, reporting and planning difficulties for the top management of the company.

AVAILABLE OPPORTUNITIES AND RECOMMENDATIONS

References

Henderson, JC, and Venkatraman, N. (1993), Strategic Alignment: Leveraging Information Technology for Transforming Organizations, IBM Systems Journal (42) 1, pp. 3-15

Sabherwal, R. & Chan, Y. (2001), Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders, Information Systems Research, (13) 2, pp.11-33.