Business
Regulation of Mergers and Implications of Government Intervention - the Case of a Potential Merger for Blockbuster
When a large firm in a mature industry wants to grow a common strategy will be the seeking of an acquisition or merger. However, large firms in an industry will often be faced with government regulation which may seek to control and limit the way merger activity takes place. For example, if Blockbuster, a major film rental company, wishes to merge with another firm they may face barriers, while these barriers may be seen as good for competitive environment, they may be perceived by Blockbuster as limiting their commercial actions.
It may be argued that government regulation of needed in the markets for a number of reasons. The first may be the role of the government in protecting the market system to ensure that competition remains in a market. Where one firm seeks to merge with another giving them a large or dominant market share there are dangers that the market power may be misused. For example, where there is a single dominant firm in a market they may become a price setter rather than a price taker. Where a firm has little effective competition the usual rules of supply and demand may not apply, as consumers may have no choice but to pay the price set by the supplier. Where the product or service sold is one that is essential such as utilities, and the demand is inelastic, the firm may be able to profiteer from the consumers who cannot switch to a different supplier. Where there is active competition in the market this is good for consumers as it places a downward pressure in firms to charge competitive prices. Money spent on one items in an economy cannot be spent elsewhere...
It is important that we be allowed to pursue our business interests with a minimum of government interference. Given that the FTC and DoJ already enforce antitrust legislation, it seems unethical that the FCC also enforce such codes, specifically focused on our particular business. I believe DWI should support the proposed changes. The company would benefit from the opportunity to expand our media properties both horizontally and vertically. It would
The existence and specialization of these three competitors materializes in the need for Creativity Sure to excel in the offering of the three types of products and services offered by challengers Karina Advertising, Falling Agency and Dorna PLC. 4.2 PEST Analysis Political forces: The development of a full legislation within the advertising field has yet to become a complete process. Recent efforts have however limited the operations of advertising campaigns in
Perhaps the biggest struggle entities face aside from legal rules and regulations that may be different between the target and bidding company (Galpin & Herndon, 2001) is the integration of two company's organizational cultures and beliefs (Daniel & Metcalf, 2001). Most HR Managers and strategic planners argue that people are the most important part of any organization. When two companies merge and incorporate a group of people with differing
Regulation of Mergers Government regulation of mergers and expansion in the smartphone operating systems market primarily protects consumers and encourages free market competition. There are antitrust laws that protect wireless consumers and promote competition against monopolistic practices. Simply put government regulation is needed to allow more competitors to enter the market. Therefore offering consumers more innovative smartphone operating system choices and options. Another advantage of regulation is to ensure pricing of products is
One specific phase that the author uses that can be applied to RBS is that innovations may force banks into decisions that are micro-functional, but macro-dysfunctional. In the case of RBS, leadership focus on reductionist metrics that offered increases in efficiencies in certain business functions, however by focusing on micro-functional areas of improvement the organization lost perspective on the macro benefits or losses incurred by a more comprehensive analysis.
Finance-dominated proponents also maintain that boom economic periods generate a more varied divergence of valuations that fuel merger activity (Medlen 2007). In this regard, Medlen concludes that, "Taken collectively, these understandings may explain some of the merger activity in booms, but they involve certain asymmetries that undercut their explanatory power. High stock valuations allow stock to be utilized as currency and collateral for takeovers; yet stock booms also make
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