Mergers and acquisitions have been prevalent amid companies in the United States for decades. Many believed that merger and acquisition strategies played a critical in the rebuilding of companies domestically three to four decades ago and continue to produce the same benefits today. Merger and acquisitions are used by companies to produce greater worth for stockholders and shareholders. Mergers involve a minimum of two establishments partnering together to form a more effective and efficient company under one umbrella. Acquisitions involve the process in which an establishment buys a controlling or complete interest in another establishment with the goal of making the acquired establishment a subsidiary in its portfolio (Hitt, M. A. 2013). Kelloggs is a household name and has been a part of families for over 100 years. In 1898, founder W.K.Kellogg and his brother attempted to make granola and in this failed attempt changed breakfast forever when they inadvertently made flaked wheat. Through experimentation, W.K.Kellogg mastered how to make flake corn, thus creating corn flakes. Kelloggs take pride in fueling bodies and providing nourishment to help people start their day. Kellogg’s produce and market convenient ready-to-eat products such as cereals, pastries, breakfast bars, crackers, fruit flavored snacks and beverages. Famous for its differentiated product line, Kellogg’s is the umbrella for many brands such as Cinnabon, Eggos, Pop-Tarts, Famous Amos, Special K,
Click here to unlock this and over one million essaysGet Access
Kellogg CompanyKellogg Company is a multinational Group of company that manufactures delicious and healthy food products. The Company operates with Battle Green, Michigan as headquarters. Kellogg’s produces cereal food products such as the toaster pastries, crackers, cereal bars, frozen waffles, fruit flavored snacks and plenty of vegetarian healthy snacks. They live up to their motto, ‘Nourishing families so they can flourish and thrive.” You can also grab wonderful jobs from their distribution centers located in Chicago, Aurora, Oak Brook and Western Stephenson County etc. in Illinois. You would need to visit the company’s website to find out more about the company.
In this chapter, we first provide coverage of expansion through corporate takeovers and an overview of the consolidation process. Then we present the acquisition method of accounting for business combinations followed by limited coverage of the purchase method and pooling of interests provided in a separate sections.
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.
Kellogg Company has been dedicated to producing great-tasting, high-quality, nutritious foods that consumers around the world know and love. With 2009 sales of nearly $13 billion, Kellogg Company is the world’s leading producer of cereal, as well as a leading producer of convenience
Kellogg’s has over 100 years history and we have14 kinds of breakfast cereal products. Our products sell to 180 countries across the world. Our mission is still to provide you and your family with better breakfasts that lead to better days, and now you eat flake corn is the same way W.K. did back in 1898. It just tastes better that way.
Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.
Many organizations will either experience a merger or acquisition to try to absorb the costs during unstable market times. Mergers and acquisitions to employee’s usual mean staff reductions and major changes, especially for an acquisition which, is when another company purchases a company and becomes a new company. (McClure, 2016)
Merger refers to the combination of two or more companies into a single company where one continues to exist, while the other loses to its corporate existence. The survivor acquires all the assets as well as liabilities of the merger company.
Breakfast cereal is a commonly eaten food in the United States. According to the website CEEREAL of the European breakfast cereal Association, the first ever cereal was granola which was invented by James Caleb Jackson in 1863 who was the operator of the Jackson Sanitarian in the state of New York (Ceereal). It would not catch on due to the long prep time needed to make the cereal edible. In 1889 two brothers W.K. Kellogg, and his brother, Dr. John Harvey Kellogg, what accidentally create arguably the first commercially successful breakfast cereal(Kellogg 's.com). W.K. Kellogg would use Kellogg 's Corn Flakes as the flagship brand, for the
In regards to acquisitions, it is important to distinguish between mergers and acquisitions. In a merger, two companies come together and create a new entity. In an acquisition, one company buys another one and manages it consistent with the acquirer’s needs. An acquisition that involves integration has greater staffing implications than one that involves separation (Rizvi, 2008). A combining of companies is a major change. Mergers and acquisitions represent the end of the gamut of options companies have in combining with each other. It is the mergers and acquisitions that are the combinations that have the greatest implications for size of investment, control, integration requirements, pains of separation, and people management issues
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.
With reference to the item on telecoms and your own research, to what extent do you think that leadership is the main factor influencing the success of takeovers and mergers?
According to Parnell, “The attractiveness of mergers and acquisitions seems intuitively obvious: Two firms join forces and the combined organization possesses all the strengths of the individual firms” (2006).
In order to have a successful M&A many different steps are involved. Each step in the process is just as important as the next and cannot be over looked. Some of the broader area’s that require focus are; accounting, taxes, and legal. Within each of these categories are several sub categories that are important to focus on when attempting to complete a successful merger or acquisition. While every organization may have a different process for doing so, and place more importance on one than another would, all of the aspects listed are important. However, it is up to each individual organization to designate how important each one is.