Real World Cross Border Mergers And Acquisitions

• Transaction structures—the takeover could involve a cash offer, a share offer, an asset swap or a combination of these methods. Need to consider legal, taxation and accounting issues.

The evolution of Wal-mart from the early 1960s to the present day has set a benchmark that few can achieve. Wal-mart executives have been successful nationally as well as globally. The knowledge and expertise in economics have made Wal-mart a global giant. The research completed is the final recommendations by the members of research team C and will address questions regarding global competition and issues of the organizations ability to expand or reduce current operations.

Wal-Mart founded in 1962 by Sam Walton is now the largest American retail corporation. With thousands of chains of stores and warehouses Wal-Mart monopolized the American retail industry. In addition, Wal-Mart is the second largest retail corporation in the world employing of two million employees world-wide. As one of the most valuable corporations in the world Wal-Mart continues to improve their sales annually while offering some of the lowest prices available. Wal-Mart’s famous low price guarantee, come at a high expense of the environment, the small businesses, education, the rights and safety of the consumer, but most importantly their employees. Although Wal-Mart has plays a dominate role in American economy, this “American”

Walmart is known throughout the entire world as one of the most popular chain department stores. Actually, most have probably visited a Walmart store in the past week. Though Walmart stores seem to be a normal part of life the average person more than likely has little knowledge that pertains to Walmart’s success and business culture. This paper will guide one through the history of the organization, why Walmart is successful, what could threaten or open new opportunities, and how might they hold a competitive advantage.

Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:

Wal-Mart is the number one retailer in the world in both sales and earnings, dwarfing many of its retail competitors. It offers a full assortment of products ranging from clothing to electronics. It currently has 6000 locations predominately within the United States with over $312.4 Billion in net sales during 2006. In addition to its strong domestic presence, Wal-Mart has expanded aggressively to Canada, Mexico, and Puerto Rico with over 1000 locations within those countries. This expansion can potentially create greater economies of scale for Wal-Mart services and merchandise. The synergies created by expansion will also drive profitability in the future by providing goods and services at even lower costs to consumers. In order to enter foreign markets successful, Wal-Mart engages in both joint ventures and acquisitions. By utilizing this method, Wal-Mart intends to leverage foreign retailer's market knowledge with its own core competencies of merchandising and supply chain management (Stilgoe, 2003).

Within less than 30 years, Wal-Mart had transformed from a small rural retailer in Arkansas into the largest retailer in the U.S. In order to continue this rapid growth, the company had started to pursue international expansion grounded in the belief that the firm’s business model of offering quality products at low prices and great customer service would appeal to consumers everywhere around the world (p.8)[1]. China was of particular interest in going international as Wal-Mart’s top management held the opinion that it was the only market in which the firm’s success story in the U.S. could be repeated (p.2/8). However, in 2005 (nine years after its

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

As an illustration, maintaining domestic equity status and raising global capital are the core aspects for MNEs to retain sufficient cash flows, merger and acquisitions, forming strategic alliances and other business activities to achieve their long term goals. In order to reach these goals, MNEs need to implement necessary steps which include to examine market segmentation, forming strategic alliance, issuing stocks and bonds to raise relevant capital and conduct other meaningful strategies to support their financial outlooks accordingly.

Wal-Mart was founded by businessman Sam Walton in 1962 as a small retail store in Arkansas, USA. From there it has grown to become the largest retail giant in the world. Ranked by Forbes 2000 list for 2011 as the 18th largest public corporation in the world, Wal-Mart is the highest revenue generating public entity in the world as of 31st January 2011, with gross revenue of 422 billion US Dollars (Walmart Annual Report, 2011). It is also noted for being the largest private employer in the world having just over 2 million employees serving in 8500 stores, in 15 different countries, under 55 different names, worldwide. (Daniel, 2010)

Walmart’s global experience was the learning foundation for retail giant, having the capacity to see where their plan of action fits in with various societies around the globally (Loeb, 2013). The premise of Walmart's development and achievement will depend on passage techniques, and social understanding in various regions (Karen Robson, 2013). Walmart offer to acquire the South African retail chain, Massmart in September of 2010 (Karen Robson, 2013). In the event the deal went through and the acquisition would represent as the U.S. retail mogul’s biggest acquisition in an emerging market as the first by global retail chain in South Africa (Karen Robson, 2013) .

* The acquirer is the combining entity that obtains control of the other combining entities or businesses.

Explain the stages that are typically taken by a firm moving from a domestic business to an international?

In this case study, Davis Service Group chose to grow in horizontal integration by acquiring of the Berendsen company it becomes beneficial for the Davis Service Group to grow in the new market. The choices accessible to Davis Service Group was above all to see what markets were the most appropriate to them to do the business. Which ought to be reasonable with respect to the corporate sector examination like, language, currency, culture alterations, however, they needed to take the choice after going out from every one of these facets. The options they had were of extending appropriately the expertise they used to follow in their country, and they flourished as the European Union provided one of the most substantial opportunities for the business sector to

Cross border merger and acquisition become a fundamental characteristic of the global business landscape. With the increasing significance of globalization in business sector, it is one of the quickest ways to achieve the objective. This phenomenon is not only noticeable in the developed country like American, Europe and Japan but also in the developing market like India. Since, 1991 the period of liberalization has influenced functioning of Indian corporate enterprise. This growing trend towards cross-border merger & acquisition has raised new urgency to understand and manage the tax consequences of international expansion.