| Entering the free tarde market caused of competition for a lot of companies. Many companies have to apply correct strategy in order to keep staying in the market. One of the company, GGRM, has applied an acquisition strategy to maintain GGRM position in the market and compete with other tobacco’s companies. In this strategy, GGRM has created a new producy variant with low Tar and low nicotine. GGRM’s performance measure is a key factor in company financial planning and guidance for investors in their investments, Mostly, company’s outlook is healthy and continuing growth, but in reality company’s is stagnant. Asset acquisition has been done in March 2002. Period that will be analyzed are four years before and after acquisition. This is a study case about GGRM’s performance before and after acquisition using Economic Value Added (EVA) method to analyzed GGrM’s performance and Wilcoxon’s rank to test the alternative hypothetical that show GGRM’s average increasing after acquisition. From EVA average GGRM seems not to able give the value added for company after acquisition, and from the wilcoxon test, also showed that no increase in average GGRM’s performance after acquisition . This stagnant mainly caused by too late of product diversity, higher GGRM’s mild cigarette price compared to competitors, increasing in transport, selling, and advertising expense that didn’t followed by increasing of sales volume, lower consuming power, increasing of illegal cigarettes, increasing of excise taxes that cannot allocate to the consumers and governments’s regulation about smoking has increased the awareness of smoking dangers in the community. For a better result in the future, GGRM have increase theirs operational efficiency which are decreased sale expenses mainly in transportation, distribution, and promotion expenses. As for the investors, they should more careful in the investment decisions at the company doing the acquisition strategy because not every acquisition able to increased the company’s value. |