Targets Acquisition of Bed Bath and Beyond

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.

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, hardware supplies, and food. They also carry seasonal merchandise such as patio furniture during the summer and Christmas decorations during November and December. Many stores may also have one-hour photo processing, a portrait studio, an optical store, a pharmacy, and a garden center. Stores opened or re-modeled in 2004 or later also include the expanded snack bar that is featured in Target Greatland locations. These generally include a Starbucks Coffee shop, a Pizza Hut Express, and a Taco Bell Express in addition to Target's Food Avenue. It has also been reported that Cold Stone Creamery and Target have signed a deal to test in-store ice cream shops in four stores. The first few Target stores included leased supermarkets in addition to general merchandise, which during the time was a common practice by discount retailers as they attempted to offer a one-stop shopping experience to customers. Douglas Dayton stated in 1967 that "we believe that the discount-grocery store is a necessary ingredient in what we offer the customer. After all, food sales are about 40% of all department store-type merchandise sales, so the two kinds of stores go hand-in-hand and are

Theoretically it is assumed that mergers improve the performance of the acquiring firm due to

Businesses have to adapt to the ever-changing economy. It is not much of a choice for business leaders to change elements of their organization to stay in competition with their peers. The hardest part, most of the time, is changing the people in the organization to develop the necessary outcome or goal. As a business leader getting rid of people or changing their job specifics is one of the many responsibilities they have to be comfortable performing. Organizations have to take into consideration their competitors, customers, shareholders, employees, and the community to make decisions. Change is an aspect that many people are afraid of. In the new millennium, organizational leaders have to embrace

A strength from performing a merger is the ability to acquire a company’s unused debt. “Some firms simply do not exhaust their debt capacity. If a firm with unused debt capacity is acquired, the new management can then increase debt financing, and reap the tax benefits associated with the increased leverage” (Keown, 2005, pp. 23-4). Another strength is enabling Baderman Island to remove an ineffective management strategy or team. Baderman Island has the option to decide who stays with the merged company, and who is out the door. Often times, a weak management leading team is the problem the organization has not evaluated for its mediocre success. “The merger of two firms can result in an increase in market or monopoly power. Although this can result in increased wealth, it may also be illegal. The Clayton Act, as amended by the Celler-Kefauver Amendment of 1950, makes any merger illegal that results in a monopoly or substantially reduces competition. The Justice Department and the Federal Trade Commission monitor all mergers to ensure that they do not result in a reduction of competition” (Keown, 2005, pp. 23-4).

brand set high standards, and expectations for customers (Target Corporate). Unfortunately, Target failed to meet those standards when it attempted its first international expansion into Canada; which was an impulsive and poorly planned decision. Rather than build new locations, Target purchased leases on189 buildings that belonged to Zellers, a dying retailer that was awarded “Worst Customer Service” (Valenti, McGlashan). These locations were poorly located, old and unlike Target’s traditional stores, which is not the best way to introduce an established brand in a

Target offers a friendlier atmosphere, whereas with Walmart has more of a resentment and hostility present when you walk through the doors. For example, when I shop at Target there is always someone to greet me as soon as I work through the door, and when I need assistance in any department there is always a sales person there to help assist me, but at Walmart it’s not that simple. I would have to hunt for someone in order to get assist with whatever I need help with. Going back to what I’ve learned in week 1 of the course, as a business grows so does its customers which will have an increase of sales on products within the business. Target has a good relationship with their customers which has built them a high level of brand loyalty. Even

Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business

This study examines how leadership, teamwork, and organizational learning can contribute in making mergers and acquisitions work. Our intention is to identify critical factors and practices needed for merger success. Our research is part of an ongoing project, and builds on previous analysis of merger success/failure in such organizations as Standard Oil, Exxon Mobile, and Time Warner-AOL. In this paper, we turn our attention to the recent merger of Pixar and Disney. In our view, the Disney-Pixar case seems to be a good example of a successful merger in progress. This is demonstrated very clearly by recent box office successes such as Academy Award

A business mergers and company expansion can be a lengthy and costly process, but if there is a strategic plan that is in place this process can be done in a effectively and efficiently fashion. The definitive goal for the HR department is to be able to successfully employee all the employees of the merger, and place them inside new positions within our global locations. Fast growing companies need to cost-effective, flexible and adaptable in today’s global economy.

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).

In the 1990’s, seemingly not a day goes by when the business press doesn’t report on multimillion- dollar mergers and acquisitions. Companies of all sizes and all industries worldwide are seizing the opportunities to broaden their competitiveness by forging corporate combinations with strategically synergistic partners. The goals of achieving growth, tapping into new markets, and creating unassailable strategic advantage underlie each transaction (Clemente & Green Span, 1998).

This past June Forbes magazine announced that 2016 would be the year of the mergers and acquisition. In order for organization’s to continue to compete in the global economy, combining organizations provides a deeper market penetration. Within hours of a merger announcement stocks tend to soar through the roof, serving as proof that Wall Street investors like mergers and acquisition. However, the decision of making investors happy can result in a pitfall for many organizations. A recent study conducted by KPMG revealed that 83% of mergers fail. For instance EBay’s merger with Skype failed because of technical integration, Wendy’s and Arby failed because of Arbys lack of international exposure, and Chrysler failed because of cultural differences. Although the organizations failed for different reasons, the common trend is not having a good integration plan. The integration plan should include a clear strategy that combines the two cultures and uses IT frameworks to facilitate it. My organization (Starwood Hotels & Resorts Worldwide Inc.) is currently going through a merger with Marriott International Inc. I am beginning to see the same trends mentioned above, happening in our organization (pre-merger). During merger and acquisitions high valued information is exchanged and tough decisions are made. Therefore, properly managing information pre and post-merger will add value to the combined organizations overall success. However in order for an organization to

Mergers and acquisitions have developed to be a widespread occurrence in modern era. A merger of the size like Adidas-Armani has repercussion for the labor force of these companies transversely to the world. Although the integration of units gives an immense arrangement of significance to monetary issues and the effects, there are still some issues are the most commonly ignored ones such as human resources, financial management, marketing, sales etc.. Ironically studies confirm that the majority of the mergers not succeed to convey the preferred results because of people associated concerns. The ambiguity resulted by badly handled management issues in mergers and acquisitions have been the foremost grounds for these collapses.