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Effort to integrate sun microsystems

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Reference no: EM132979438

Oracle Integrates Sun Microsystems

Following closing its acquisition of Sun in early 2010, Oracle must rationalize and consolidate Sun's manufacturing operations and substantially reduce the number of products the firm offers. Fewer products will mean less administrative and support overhead. Furthermore, Oracle has introduced a "build to order" mentality rather than a "build to inventory" marketing approach. With a focus on "build to order," hardware is manufactured only when orders are received rather than for inventory in anticipation of future orders. By aligning production with actual orders, Oracle expects to reduce substantially the cost of carrying inventory; however, it does run the risk of lost sales from customers who need their orders satisfied immediately. Oracle also intends to pare the number of suppliers in order to realize savings from volume purchase discounts. Historically, Oracle has been a more "bottom line" and less bureaucratic firm than Sun.

Discussion Questions:

1. What specific challenges do you believe Oracle will face in its efforts to integrate Sun Microsystems?

2. What do you believe Oracle should do to overcome each of these challenges? Be specific.

Reference no: EM132979438

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