From A Merger Essay

Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.

Mergers and takeovers are forms of external growth within a business. External growth occurs when one firm decides to expand by joining together with another. A takeover specifically refers to the gaining control of a firm by acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining with another firm to form a new combined enterprise, shares in each firm are exchanged for shares in the other.

Organizations must not overlook the environmental factors that are outside of the organization, as they can leave a detrimental imprint on the organization and their attempts to achieve various goals. According to the textbook, “Domain defines the organization’s niche and defines those external sectors with which the organization will interact to accomplish its goals” (Daft, 2013, p. 142). Some of the external sectors include human resources, technology, economic conditions, and financial resources (Daft, 2013). Changing the organization’s domain is a feasible strategy for coping with a threatening environment because it allows the organization to remain competitive when the market changes. Organizations are constantly shifting and doing so in a rapid manner, which makes it even more likely for organizations to become unstable if action is not taken when threating environmental factors occur. Although the process may be difficult, organizations should look into changing the domain to keep up with the speed and volatility of the market. Mergers and acquisitions are two plausible options for organizations to partake in to reduce uncertainty (Daft, 2013). An organization can either purchase an organization to further their operations or merge with another organization to form a more powerful and dynamic organization. For example, Sirius and XM Radio were rivals back in the day, but merged together to provide consumers with Sirius and XM Radio for their vehicles.

(a) In a merger agreement, the assets and liabilities of the firm which is being acquired end up being absorbed by the buyers firm. A merger could be the most effective and efficient way to enter a new market without the need of creating

Becoming a larger more efficient company with a strengthening competitive position opens up the opportunity for more mergers and acquisitions of competitors, suppliers and/or customers.

Mergers and acquisitions have become a growing trend for companies to inorganically grow a business within its particular industry. There are many goals that companies may be looking to achieve by doing this, but the main reason is to guarantee long-term and profitable growth for their business. Companies have to keep up with a rapidly increasing global market and increased competition. With the struggle for competitive advantage becoming stronger and stronger, it is almost essential to achieve these mergers. Through research I will attempt to dissect the best practices for achieving merger success.

Edward Hirsch’s poem “Mergers and Acquisitions”. The theme of this poem is the corporate world, which is not just the language he uses in the first part of the poem. He is using this language to make a few points to the reader. One of the points he is making to the reader is how this language, or these terms are only familiar to a select group of people. This group of people, some can argue, control most of the economy of the United States.

2. What are the differences among horizontal, vertical, and conglomerate mergers? Provide real-world examples of each type of merger. What policy do you think the US should follow toward mergers? Why?

Just like Harris Corporation, Exelis Inc. is mainly in business as a defense contractor for U.S Government. It manufactures high tech weaponry such as integrated electronic warfare, sensing and surveillance, air traffic management, information and cyber security, and networked communications. Exelis also provides aerostructures, logistics, and technical services. Even though U.S government is the main customer, Exelis also serves commercial clients, with international customers comprising about 10% of sales.

According to experts, IT is labeled as the “root cause” for many merger failures due to lack of integration, failure of due diligence and the inability to facilitate synergies (“IT M&A”, n.d.). With eighty

The new entity could leverage the core competency and brand recognition in respective market segment.

With each passing day the health care industry is experiencing an increase in participants due to its perfect competition nature. Due to this increase the industry participants, the industry has vicious competition which in effect leads to an increased in the cost of doing business. Smaller companies within the industry are hard hit by this competition due to their limited resources and therefore find it hard to remain relevant within the industry. Due to the looming threat of closure and liquidation, small companies must explore various strategies they may use to remain in operation. On the other hand large hospitals that are looking to eliminate competition and at the same time improve on their market share and in effect their revenues, merge with those that are struggling with low profitability. These mergers are beneficial to the smaller struggling companies since they provide increased savings on company overheads and availability of specialized machinery. Growth is also expected due to the increased market share as well as the good will already established by the large company. Contrary to popular opinion, mergers are not always between a large and a small company. In the healthcare industry two small companies may come together in order to pool their resources together and be in a position to compete against the large companies.

Mergers and acquisitions can be classified in terms of the direction of the growth. A horizontal merger/takeover is the combining of two firms in the same stage of production, for example Well come Pharmaceuticals merged with Glaxo Pharmaceuticals. This sort of integration takes place to combat competition from the market and secure market domination; to reduce risks and increase financial strength; and to compete in

Chapter 7: Merger and Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock)

A merger refers to the process whereby at least two companies combine to form one single company. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry.