IMASCO LIMITED

COMPANY
Roy Rogers Acquisition

Group Member:
• Andhika Sinusaroyo
• Agung Taufiqurrakhman
 Questions:

EXPLAIN THE
C O M P ON E N T S O F
I M A S C O ’ S C O R P O RAT E
S T R AT EGY

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 IMASCO’S CORPORATE STRATEGY
The Mission of
IMASCO is to create
shareholders value as
a leading North
The role of IMASCO American consumer
Center was to guide IMASCO
IMASCO’s overall diversification
growth without policy was
interfering with the direct and
operating companies decentralized

IMASCO
Corporate
Management believed Strategy
that combining the
experiences and expertise The Company Goal in
would create unique Diversification is to build
opportunity to add value a broadly based business
to all of its operations that not only rely on
asset tobacco industry

IMASCO approach to
diversification was
prudent and
conservative, they
prefer to make a small
investments

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 Questions:

a) Does the proposal to acquire Roy

Rogers reflect related or unrelated
strategy?
b) Who will make the final decision?
c) What is the considerations?

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Answer:

a) The Proposal to Acquire Roy Rogers for IMASCO is a related acquisition strategy because before acquired Roy
Rogers, IMASCO already has Hardee’s, the third largest hamburger fast food chain in the US. However, the
strategy to acquire Roy Rogers is to increase the market penetration through geographical expansion. The Roy
Rogers has 648 restaurants chain and dominated in the Middle and North Eastern part of the states, while the
Hardee’s restaurant chain was dominant in the Southern part.

b) Crawford as a CEO of IMASCO and the Management (IMASCO Board) is the one who make the final decision
whether to acquire Roy Rogers or not, but the proposal is offered by Bill Prather, the CEO of Hardee’s

c) His main considerations to acquire Roy Rogers is their wide geographical market with 648 restaurant units
owned by Roy Rogers, in order to expansion the Hardee’s market penetration.

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 Questions:

D O YO U T H I N K R OY
ROGERS SHOULD BE
ACQUIRED? WHY?

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Answer:

I think Roy Rogers should not be acquired by IMASCO. Why? Because, remembered IMASCO’s core business
basically it is a Tobacco company and they already has Hardee’s before they acquired Roy Rogers. It could be lead to
the bottlenecks on the business organizations. When acquire Roy Rogers, The Management only consider the
market expansion and did not consider the brand identity of Hardee’s in the North West area of the US, it cause the
difficulty in converting the 278 franchisees from Roy Rogers into Hardee’s. The Implications is Hardee’s sold off the
Roy Rogers outlets in 1998 and late 1990s to McDonalds and Wendy’s.

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