It is widely accepted that many mergers and acquisitions result in financial disappointment. Company A buys Company B only to sell it off five to six years later as it was not possible to generate the expected synergies or cost savings. Indeed numerous research and business school studies have show M&As to be a high risk business strategy.
Donald Hambrick and James Fredrickson provide a very good framework for understanding what is and is not strategy. This is a very useful for helping senior managers to see how everything fits together and the importance of having an coherent overall, centrally integrated and externally oriented concept of how they will achieve their objectives.