Mergers and Acquisitions: The Case of Microsoft and EPAM
This paper focuses on Microsoft Corporation. The firm is one of the major public multinational corporations in America with headquarters in Redmond, USA. The company majors in developing, manufacturing, licensing, and supporting a broad scope of services and products that are especially predominant in the computing of various product divisions. The firm was established in 1975 with the goal of developing and selling BASIC interpreters to Altair 8800. Microsoft gradually rose to the dominance of operating system markets for home computers using the MS-DOS component from mid-1980s. This was followed by Microsoft Windows dimension of the operating systems. The firm, Microsoft, translated into a dominant office suite market for Microsoft Office. The company has often diversified as seen from recent interactions with the video game industry like the Xbox and the Xbox 360, its successor. The company had made an impact in the digital services and consumer electronics market with MSN, Windows Phone OS, and the Zune.
The initial public offering of the company was presented in March 1986. The company stocks eventually hit U.S.$27.75 for each share with a peak of $29.25 for the shared markets that were open for extensive trading. The focus of the offerings enabled Microsoft to have market capitalization in terms of $519.7 million. The firm has acquired close to 146 companies and purchased considerable stakes in 61 major companies (Gleich, Kierans & Hasselbach, 2010, pp 72). The company registers a full scope of divestments. From the companies, Microsoft has acquired close to 107 based in United States of America.
Microsoft remains salient on disclosures of financial details for the mergers and acquisitions. This paper also focuses on the company acquisition of Network Managers in the Systems design industry on July 10, 1995. The Network Managers Company was based in the United Kingdom. It will also analyze EPAM Systems Inc. A company that is only based in the U.S. The firm provides a broad array of sophisticated solutions in software engineering and technology services that have capacity distributed across the country (DePamphilis, 2010, pp 91). The company has a fundamental focus on building extensive and lasting partnerships with different clients in the industry while demanding for technological advancement of solutions and skills. Strategic partners include independent software vendors, and technology specialists, banking and finance professionals, business media and information persons, and consumer and travel agents. The firm delivers services to customers based in North, Western, Central and Eastern America. Arkadiy Dobkin and Leonid Lozner established EPAM Systems in 1993 at Newtown, PA.
In the global economy, the trends in international business are rebound towards recent economic downturns with companies across the world looking towards extensive growth. The elements of growth are compounded based on bottom lines without sufficient components. In business management, Microsoft Corporation takes a holistic approach towards growth while identifying alternative business opportunities that extend the existing customer relationships while improving internal systems (Yurov, 2008, pp 172). The approach creates an opportunity of making acquisitions that allow for boosting of the firm's competitive advantage across the periods given. Growth based on strategic acquisition allows for opportunities for building value and positioning the business for industry success. While the elements have relative reasons of growth in the market, the increment of earnings and income will be based on maintaining competitive advantage (Sirower, 2010, pp 82). For instance, the perception of growth in business is one of the essential elements of long-term performance strategies that are typically overlooked. The growth of Microsoft Corporation is one of the important goals in the company's history requiring potential acquirers to develop performance interests.
Microsoft Corporation's strategy on acquisition adds scale to the business portfolio while demonstrating the company's management focus coupled with wherewithal on proper implementation of growth strategy (DePamphilis, 2010, pp 121). The company also has the relative perception of stable corporate entities with an in-depth management of intellectual property and barriers to entry. For instance, there are concepts of commanding broader selling prices. Success in targeting right acquisition begins with industry analysis coupled with assessment of identified goals based on various aspects of criteria, such as size, profitability, management weaknesses, growth rate, services and products, geographic location and strengths. The process as practiced by Microsoft Corporation is a way of dissolving growth principles to advance on growth. The approach also helps in ensuring that the focus groups target capacity for additional acquisition elements in terms of company strengths and mitigation of weaknesses (Sirower, 2010, pp 82).
Microsoft Corporation is in a position of objectively valuing alternative businesses with respect to the fundamental growth capabilities. The approach also tends to attach lower value to the competing companies as compared...
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