Skip to main content
Log in

The logic and Lure of Acquisitions: A Case Study from the Steel Industry

  • Published:
Journal of Business and Psychology Aims and scope Submit manuscript

Abstract

This paper analyzes a recent acquisition decision in the Canadian steel industry. Drawing on interviews with participants in the decision process, the writer explores the roles of technological, psychological, life-stage, and cultural factors in the acquisition and its subsequent divestment.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

REFERENCES

  • Allison, G. (1971). Essence of decision: Explaining the Cuban missile crisis. U.S.A.: Harper-Collins Publishers.

    Google Scholar 

  • Babad, M. and Mulroney, C. (1990). Campeau: The rise and fall. Toronto: McClelland-Bantam, Inc.

    Google Scholar 

  • Beyer, J. (1981). Ideologies, values and decision making in organizations. In P. Nystrom and W. Starbuck (Eds.), Handbook of organizational design. New York: Oxford University Press. 2, 166–202.

    Google Scholar 

  • Bliss, M. (1990). Northern enterprise: Five centuries of Canadian business. Toronto: McClelland & Stewart Inc.

    Google Scholar 

  • Bryne, J., Symonds, W. and Siler, J. (1991, April 1). CEO disease. Business Week. pp.52–60.

  • Burrough, B. and Helyar, J. (1990). Barbarians at the gate: The fall of RJR Nabisco. New York: Harper & Row, Publishers.

    Google Scholar 

  • Canadian Pacific Limited News. (1988, July 18). Canadian Pacific Limited agrees to tender Algoma Steel shares. (Press Release). Toronto.

    Google Scholar 

  • Chakravarthy, B. (1986). Measuring strategic performance. Strategic Management Journal. 7, 437–458.

    Google Scholar 

  • Crowther, J. (1969). Peril-point acquisition prices. Harvard Business Review. 47, September–October, 58–62.

  • Davie, M. (1992, May 4). How Dofasco's big deal failed. The Hamilton Spectator. p. C7.

  • Davis, R. (1968). Compatibility in corporate marriages. Harvard Business Review. 46, July–August, 86–93.

  • Dofasco Inc. (1987). 75th Anniversary Publication. (Special publication). Hamilton, Ontario.

  • Donaldson, G. and Lorsch, J. (1983). Decision making at the top: The shaping of strategic direction. New York: Basic Books, Inc., Publishers.

    Google Scholar 

  • Duhaime, I. and Schwenk, C. (1985). Conjectures on cognitive simplification in acquisition and divestment decision making. Academy of Management Review. 10,(2), 287–295.

    Google Scholar 

  • Erikson, E. (1980). Identity and life-cycle. New York: W.W. Norton & Company.

    Google Scholar 

  • Fleming, J. and Olive, D. (1991). Dofasco's big misadventure. Report on Business Magazine. 7,(12), 32–39.

    Google Scholar 

  • Gordon, J. (1992, October 16). Personal communication.

  • Gordon, J. (1988). Dofasco's acquisition of Algoma: An analysis of the financial and other implications. McLean McCarthy Research, Toronto.

    Google Scholar 

  • Guth, W. and Tagiuri, R. (1965). Personal values and corporate strategy. Harvard Business Review. 43, September–October, 123–132.

  • Hambrick, D. and Mason, P. (1984). Upper echelons: the organization as a reflection of top managers. Academy of Management Review. 9, pp.193–206.

    Google Scholar 

  • Heron, C. (1991). Working in steel: The early years in Canada, 1883–1935. Toronto: McClelland & Stewart Inc.

    Google Scholar 

  • Hoerr, J. (1988). And the wolf finally came. Pittsburgh: University of Pittsburgh Press.

    Google Scholar 

  • Howell, R. (1970). Plan to integrate your acquisitions. Harvard Business Review. 48, November–December, 66–76.

  • Jemison, D. and Sitkin, S. (1986). Corporate acquisitions: A process perspective. Academy of Management Review. 11,(1) 145–163.

    Google Scholar 

  • Kets de Vries, M.F.R., and Miller, D. (1984). The Neurotic Organization. San Francisco: Jossey-Bass.

    Google Scholar 

  • Kierulff, H. (1981). Finding the best acquisition candidates. Harvard Business Review. 59, January–February, 66–68.

  • Languedoc, C. (1988, July 25). Dofasco flexes its strategic muscles: Algoma buy gives steelmaker clout in competitive new era. The Financial Post. p. 1.

  • Leighton, C. and Tod, R. (1969). After the acquisition: continuing challenge. Harvard Business Review. 47, March–April, 90–102.

  • Levinson, D. (1978). The seasons of a man's life. New York: Ballantine Books.

    Google Scholar 

  • Mace, M. and Montgomery, G. (1962). Management problems of corporate acquisitions. Boston: Harvard University.

    Google Scholar 

  • McMurdy, D. (1988, July 20). Dofasco's bid for Algoma wins cheers from brokers. The Financial Post. p.5.

  • Meindl, J. Erlich, S. and Dukerich, J. (1985). The romance of leadership. Administrative Science Quarterly. 30, 78–102.

    Google Scholar 

  • Ouchi, W. (1981). Theory Z: How American business can meet the Japanese challenge. New York: Avon Books.

    Google Scholar 

  • Phoenix, P. (1992, October 16). Personal communication.

  • Thompson, J. (1967). Organizations in action. New York: McGraw-Hill Book Company.

    Google Scholar 

  • Tzu, S. (1983). The art of war. New York: Dell Publishing.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Litz, R.A. The logic and Lure of Acquisitions: A Case Study from the Steel Industry. Journal of Business and Psychology 14, 119–134 (1999). https://doi.org/10.1023/A:1022914702744

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1022914702744

Keywords

Navigation