The Main Goal Of A Business

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.

Collusive synergy (Chatterjee, 1986) and competitor interrelationships (Porter, 1985).Jensen (1984) criticized the monopoly theory. He studied effects of merger announcements, free cash flow hypothesis and merger cancellations on competitors stock. Under the monopoly theory competitors' stocks should rise upon an announcement and drop if the merger is challenged or cancelled. Since competitors’ stocks do not fall on the two latter events Jensen (1984) rejects the monopoly

In addition, like any other merger between two firms, companies benefit from significant cost synergy during the implementation of an acquisition and/or merger with other company. For example, when two companies combine their strengths to complement each other, they restructure their operations and as a result several offices and sites are closed down which leads to the laying off of employees, consolidating services and software applications. All these changes, result in synergy savings for the new company.

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

Many industries and privately owned business face several fulfillments, as well as challenges and obstacles. Without challenges and obstacles to jump through, what would make a professional business goals exciting, but yet troubling at the same time; that a company wants to just forefeet as an alternative? When challenges arrive one of the best things that companies can do, is look back at what has been accomplished, turn to their mission and vision statements, ultimately stand up and focus on what it stands for and review their SWOT analysis to where and what can be differently to secure their achievements and/or make operation stronger.

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

To form good working relationships and start working as a team, promoting communication and suggestions from all participants.

Voluntary combination of the two firms in to a new legal Entity. Mergers are effected by exchange of the pre-merger stock or shares for the stock of new company. Owners of each pre-merger company continue as owners, and resources of merging companies are pooled for the benefit of the new company. If the merger takes place between competitors, like in Mobilink and WARID, so it will be “Horizontal Integration”, and if the merger takes place among supplier and customer, so it is known as “Vertical Integration”.

The key behind the M&A (merger and acquisition) is the requirement and creation of synergy. When two companies join in the reasonable manner the resulting entity has better economies of scale, optimal utilization of resources and much efficient presence of market, all of these result in high profits and sustainability in competitive advantage.

In the event that WeaveTech would consider a merger or acquisition, there are some major risks and issues that should be considered. Mergers and Acquisitions (M&A) is a term referring to the consolidation of companies or assets. A merger is a combination of two companies forming to become a new company, and an acquisition is the purchase of one company by another in which no new company is formed (investopedia.com, 2016). The term M&A also refers to the department of financial institutions that deal with mergers and acquisitions. Every merger and acquisition has its own reasons based on organizational goals.

Looking at the long-term goals of a business and taking into account different internal and external factors creates a firm’s business strategy. It is necessary for a firm to analyse and respond to the competitive environment due to the constantly changing nature outside the business. The competitive environment can be defined as the market in which the business trades against its competitors, with similar products or services, with the aim of gaining the largest market share using a competitive strategy.

During the recent years, the amounts of snow tourists have expanded a lot, majority of them prefer to go to ski resorts for skiing. Ski boots is the essential equipment for every skier，they may feel uncomfortable due to their heavy ski boots while walking, at the same time, walking on the ground is easy to damage the sole of the ski boots. Our product, ski boot walking aids, can be fastened on the sole of ski boots quickly to enhance walk comfort and posture, and protect the expensive ski boots as well. This individual report will firstly do the brief summary of the key elements of the business plan, and then analyse and evaluate the strengths and weaknesses of the plan, and then analyse the pros and cons of my own contribution to the work of the group, finally, the report will summarise the main benefits that I have received from participation in the module and group business planning process.

When considering the commonest reasons for loss of profit, shrinking of companies and failed acquisitions, one of the reasons that cannot be ignored is the over expectations the acquiring firm was of synergy. Synergy can be defined as the “extra energy or effective that people or businesses create when they combine their efforts.” (Macmillan Dictionary, 2009). Chatterjee (2006) suggested that there are three types about synergy: financial synergy, operational synergy and collusive synergy. All of these three types of synergy could show in acquisition. It has been argued that, the over expect of synergy usually caused by the over confident of the manager and the incorrect analysis of the market. Due to the over expect, the parent company could acquired another firm with a high price, the price could more than actual value of the acquired firm. Moreover, after the acquisition, the money spent on the acquisition cannot be gained back through the acquired firm, it could become a new pressure to parent firm and also influence the

Part of EnerMech’s strategy is to expand its global footprint into the western hemisphere, due to the location of the oil in gas in politically unstable countries for example Brazil and Colombia. Since 2010, oil production has flattened out entirely. In 2013, Brazil averaged only 2.7 million bpd of oil production, which is where it was three years ago. This is due to corruption and money laundering in the major Brazilian oil producing companies. http://oilprice.com/Energy/Energy-General/Problems-At-Petrobras-Mount-As-Brazils-Oil-Production-Stagnates.html Local content legislation is also obstructing production. With

Business owners must identify their typical customer and then market to that customer base. In today’s economy having a niche can be very effective. This allows you to focus your message and marketing money to specific market.