Mergers, Acquisitions, And Downsizing
Difference between a merger, acquisition and a downsizing

All the three are management strategies dealing with the competitiveness of the companies in subject (Cassiman, 2006). The choice for either of the three depends on the interest of the subject company in their relationship with the other companies in the industry. The differences arise from the various components such as their concepts, size, application and the condition for their occurrence.

The concepts

Merger is a cooperate strategy involving the combination of many companies whereby the subject companies intend to expand their business operations. Acquisition involves the combination of the companies with only one company having most interest in the newly established company. Downsizing always applies to both the acquisition and merger whereby the newly established company realizes that the new operating structure is costly: consequently triggering the need to downscale the cost (Shook & oth, 2011). Downsizing often occurs after mergers…...

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References

Cash, Jr., J., Earl, M., & Morison, R. (Nov 2008). Teaming Up to Crack Innovation & Enterprise

Integration. Harvard Business Review, 86 (11), 90 -- 100.

Cassiman, B. (2006). Mergers & acquisitions: The innovation impact. Cheltenham [u.a.: Elgar.

Shook, L. & Roth, G. (2011). Downsizings, mergers and acquisitions: Perspectives of human resource development practitioners. Journal of European Industrial Training, 35 (2), 135-

Mergers
In 1998, Citicorp acquired Traveler's Group in a merger of financial services giants. The combination created the world's largest financial services company at the time, combining banking, investments and insurance (Martin, 1998). Under terms of the deal, it was a stock swap, with Traveler's paying $70 billion for Citicorp's shares, though the deal was sold as a $140 billion deal (Ibid). The deal paved the way for expectations that future similar deals would be allowed (Carow, 2001). This paper will analyze the deal in retrospect, to see if the deal delivered value for the shareholders of the two firms. Since it was described as a merger, the shareholders of both firms were expected to benefit.

Background

In the late 1990s, there was tremendous excitement in the markets about the possibility that major mergers in the financial services industry would be allowed by Congress. Carow (2001) noted that market expectations for the allowance…...

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Works Cited:

Carow, K. (2001). Citicorp-Travlers Group merger: Challenging barriers between banking and insurance. Journal of Banking and Finance. Vol. 25 (8) 1553-1571.

Elkind, P. (2010). Ex-Citigroup chief says bankers behaving wildly. CNN Money. Retrieved April 9, 2013 from  http://money.cnn.com/2010/10/27/news/companies/john_reed_citigroup.fortune/index.htm 

Martin, M. (1998). Citicorp and Travelers Plan to merge in record $70 billion deal: A new no. 1: Financial giants unite. New York Times. Retrieved April 9, 2013 from  http://www.nytimes.com/1998/04/07/news/07iht-citi.t.html

The constituent company's presence in China is geographically complementary, so that their respective distribution networks can be used to build each other's brands in their respective strongholds. Further, cost synergies of $1.5 billion annually are expected to accrue (Anheuser-Busch, 2008).
These claims are reasonable. There is little geographical overlap between the different brands. In particular in China, A-B is strong in the northeast, while InBev is strong in the southeast. The two companies are also complementary, with A-B strong in North America and InBev strong in Europe and South America. The experience of InBev in its previous major move in North America (the acquisition of Labatt's in Canada) was that it was able to build market share for InBev global brands by using the existing Canadian distribution system. Therefore, their expectation of replicating this success in the U.S. is reasonable. The claim of cost synergies is, however, questionable. hile InBev…...

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Works Cited:

No author. (2009). InBev completes Budweiser merger. BBC. Retrieved November 27, 2009 from  http://news.bbc.co.uk/2/hi/7735953.stm 

No author. (2007). 2007 NAICS definition. NAICS. Retrieved November 27, 2009 from  http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=312120&search=2007%20NAICS%20Search 

Press Release. (2008). InBev and Anheuser Busch agree to combine. Anheuser-Busch. Retrieved November 27, 2009 from  http://www.anheuser-busch.com/Press/PressImages/FINAL%20PRESS%20RELEASE.pdf 

No author. (2009). Mergers and acquisitions: Definition. Investopedia. Retrieved November 27, 2009 from  http://www.investopedia.com/university/mergers/mergers1.asp

ergers and Acquisition
Company Acquisition

As a CEO, you are trying to acquire a foreign firm. The size of your firm will double and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based?

look company is a major company in Ohio Columbus in the U.S. And specializes is the sale of all types of spectacles both for the visually impaired or those with visual problems and sun glasses of all designs. This company has been in operation from 1998 and seeks to expand its operations into the African market by acquiring Yengo enterprises which operates in the major East African cities; that is, Nairobi, Kampala and Kinshasa. As the CEO of I-Look enterprises, I need to take into account the following issues discussed below.

There are many reasons why companies owners decide to…...

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Most sellers are prone to number of mistakes and it is wise that they are enlightened in order to avoid making the same mistakes. These mistakes include being indecisive and impatient. If a seller appears to be too anxious, buyers tend to make use of this to push for a lower price whereas if the seller takes too long, the opportunity to sale may pass them by, therefore timing is very paramount. Moreover, the seller must be very careful to ensure that the details of the sale are made public at the opportune time. If the seller informs the employees of the sale too soon, some of the top management may decide to leave for fear of losing out. Creditors and suppliers may also be doubtful of the credibility of the business and put more pressure for outstanding debts or be reluctant to continue supplying (Sherman, 2010).

You are very enthusiastic about the opportunity to be a leading captain of industry and the associated power, prestige, and income. (You expect your salary, bonus, and stock option to double next year). However, you are troubled by the fact that 70% of mergers and acquisitions (M&As) reportedly fail. How would you proceed?

There are a number of reasons why acquisitions fail. In most cases, lack of the acquirer to fully analyze the commercial, financial or strategic implications may be the main reasons for the acquisition to collapse. It is important for the acquirer to find out if the management is running the business smoothly enough before adding more responsibilities. If the management team is experiencing hurdles in the business before acquisition, it becomes obvious that an acquisition will not fare well. Compaq's

The leadership personnel of the companies were far more affected by this merger, and there is no evidence that this merger was viewed as anything but a positive move for both companies by these individuals (Coffee 2006; Taft & Musich 2006; Knorr 2006). The cash premium that was paid to Mercury Interactive shareholders and the ongoing increase in price for Hewlett Packard stock following the merger makes it likely that shareholder response to the merger was equally positive (Google Finance 2010; Hewlett Packard 2006a).
Conclusion

Many mergers, especially in the past decade of increased scrutiny of accounting methods and financial reports, are quite complex and time consuming. The merger between Hewlett Packard and Mercury Interactive, however, was accomplished with a great deal of simplicity and efficiency. Though the primary benefits to both companies were found in the boosted assets, market share, and operational scope of the merged entity, the efficiency of…...

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References

Boardman, B. (2006). "Merging for muscle." Network Computing, 17(6), pp. 16.

Coffee, P. (2006). "HP-Mercury: Modules to monoliths." eWeek 23(3), pp. 18.

Google Finance. (2010). "HPQ." Accessed 27 October 2010.  http://www.google.com/finance?client=ob&q=NYSE:HPQ 

Harkiolakis, N. & Mourad, L. (2009). "Preserved Valuation Measurements in Mergers and Acquisitions of Similar Size Corporations." In Recent Advances in Management, Marketing, Finance. Penang, Malaysia: WSEAS Press. Accessed 27 October 2010. http://74.125.155.132/scholar?q=cache:kSabfbC1VpcJ:scholar.google.com/+hp+mercury+interactive+merger&hl=en&as_sdt=1

If the failure is sufficiently severe, the future of the company could be called into question, leading to customer and supplier flight, creating a death spiral.
These impacts can spread far and wide. For example, a company with a failed merger could ultimately lose market share as its weaknesses and its distracted management are exploited by competitors. Sometimes firms merge to acquire market share, but then fail to perform as well as the two individual entities did, resulting in market share declines. This can cause the firm's industry position to deteriorate in addition to its market share. The loss of prestige can actually impact the market share as well.

Goodwill is created on the balance sheet during a merger as the result of the difference between the cost paid for the acquired company and its book value. The goodwill is reflective of the expected synergies and gains that are expected to…...

Merger, Acquisition and International Strategies
Mergers, Acquisitions and International Strategies

A merger is a combination of two or more business entities with the aim of consolidating the resources that they have and creating a single entity with that. The process of merging is done through acquisition or direct pooling together of the resources available. Acquisition occurs when a firm buys a stake in another firm and assumes control of it. Acquisitions are part of growth strategies paid for in cash, payment through stock of the acquiring company or both. Mergers and Acquisitions commonly denoted by M & A work hand in hand and are in recent times seen as one. M & A is a strategy of finance and management dealing with the selling, buying, combination of, firms and entities to help grow a firm rapidly. M & A occur to help a firm create a new strategy, joint venture or pursue…...

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References

GM:New York Stock Quote - General Motors Co - Bloomberg. (n.d.). Bloomberg - Business, Financial & Economic News, Stock Quotes. Retrieved December 1, 2012, from  http://www.bloomberg.com/quote/GM:U.S .

General Motors | GM.com. (n.d.). General Motors | GM.com. Retrieved December 1, 2012, from  http://www.gm.com/ 

Tesla Motors | Premium Electric Vehicles. (n.d.). Tesla Motors | Premium Electric Vehicles. Retrieved December 1, 2012, from  http://www.teslamotors.com/

Mergers & Acquisitions
Should a firm attempt to have fewer or more suppliers?

It depends on the situation the client is in terms of availability of materials and such as well as the number of vendors out there. A firm should balance between not putting all the proverbial eggs in one basket by using only one or two vendors and using too many and thus making administration and logistics more complicated (eSmallOffice, 2013)(Entrepreneur, 2013).

The "sweet spot" is probably 3 or 4 vendors although it can be more if more are required to reliably get all the materials but less may be needed can provide what is needed on time and in a reliable fashion and at a good cost. In short, there shouldn't be more vendors than needed while at the same time, there shouldn't be too few to protect against problems with vendors (eSmallOffice, 2013)(Entrepreneur, 2013)..

What are the advantages and disadvantages…...

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References

Entrepreneur. "How to Find and Work With Suppliers | Entrepreneur.com." Business

News & Strategy For Entrepreneurs | Entrepreneur.com. N.p., 4 Oct. 2013. Web.

4 Oct. 2013. .

eSmallOffice. (2013, October 4). Don't Let Suppliers Control Your Business. Small Business Owner Resource Center|Business Guide - eSmallOffice. Retrieved October 4, 2013, from http://www.esmalloffice.com/SBR_template.cfm?

Merger
One of the greatest mergers in the history of computers was recently organized between Hewlett Packard and Compaq Computers. This was a great victory organized by the chief executive of Hewlett Packard, Carleton S. Fiorina. The direct proof has come within one year of the purchase of Compaq computers at a cost of $19 billion. There was a savings of $3.5 billion and this was achieved in one year, when the promise was to save a billion dollars less and that too, by the end of two years. The company has had the classical result of mergers with a decrease of 17,000 jobs but there was a gain of market share, over 3,000 new patents and launching of 367 new products. It was also very successful in gaining new contracts and got $3 billion contract from Proctor and Gamble that is spread out over ten years. The success has given…...

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Bibliography

Hardy, Quentin. We Did It, 11 August, 2003. Retrieved at   Accessed on 29 June, 2004http://www.forbes.com/forbes/2003/0811/076_print.html .

Rupley, Sebastian. HP and Compaq Get Down to Brass Tacks, May 10, 2002 Retrieved at   Accessed on 29 June, 2004http://www.pcmag.com/article2/0,1759,50028,00.asp .

Popovich, Ken. HP Releases First Earnings Reflecting Merger; August 27, 2002 Retrieved at   Accessed on 29 June, 2004http://www.eweek.com/article2/0,3959,489290,00.asp .

Popovich, Ken. Fiorina: Compaq Acquisition Paying Dividends; October 23, 2002 Retrieved at   Accessed on 29 June, 2004http://www.eweek.com/article2/0,3959,645785,00.asp .

Merger
Global Implications of the TAP/IAG Merger

In order for any merger to be successful achieved and the two venture to remain profitable in the future, careful consideration of environmental and industry factors as well as certain internal features of both companies involved in the merger must be undertaken. This type of comprehensive internal and external analysis, such as a standard SWOT analysis, would provide a general overview of any of the different risks and potential channels for rewards that such a merger would face (Campbell et al., 2011). A more detailed examination of certain features can also be beneficial, however, not only in helping to forecast certain challenges and outcomes, but also in illuminating the importance of key decisions and the methods by which they are made. An overview of the internal components of organizational structure, culture, and leadership in regards to the merger between Air Portugal (TAP) and the International…...

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References

Campbell, D, Stonehouse, G & Houston, B (2011) Business Strategy, An introduction, 3rd Ed. Burlington, MA: Butterworth-Heinemann.

Johnson, G, Scholes, K, and Whittington, R. (2010). Exploring Strategy, 9th Ed. New York: Ed Pearson Education.

Parker, A. (2011). IAG Looks at Three Potential Mergers. Financial times. Accessed 7 December 2011.  http://www.ft.com/international/cms/s/0/7b1bd9e8-df6c-11e0-845a-00144feabdc0.html#axzz1ftdzcfvm 

Portuguese American Journal. (2011). TAP Air Portugal to be Sold -- Bailout. Accessed 7 December 2011.  http://portuguese-american-journal.com/tap-air-portugal-to-be-sold-bailout/

Merger and AcquisitionThese two terms, merger and acquisition, often refer to the act of the companies joining; when two separate business firms combine to create a new venture, it means that they have merged. Alternatively, an acquisition refers to a takeover of one entity by another. The two can be completed so that there can be an expansion of the companys reach or in an attempt to gain the market share to create the value of the shareholder. Typically, the reason why we have merged is to reduce the operational costs, to boost profits and revenues, and to expand into new markets. In an acquisition, the smaller company ceases to exist, and the bigger company operates the management. In the blog below, the topics covering a current contemporary issue are; creating value, financial investment, and financial value. These will be discussed about the merging and acquisition concept.The contemporary issue in…...

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Work cited

Akan, Mustafa, and Arman Teksin Tevfik. \\\\\\"Fundamentals of finance.\\\\\\" Fundamentals of Finance. De Gruyter, 2020.  https://www.degruyter.com/document/doi/10.1515/9783110705355/html 

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 DI should support the proposed changes. The company would benefit from the opportunity to expand our media properties both horizontally and vertically. It would also give us greater opportunity to exit the business should we so desire in future. Ethical concerns about media consolidation are largely unfounded, especially in light of the way that the Internet provides a low-cost voice for alternative media outlets. The Telecommunications Act of 1996 has significantly reduced barriers to entry in the television business, so the free market can dictate which outlets will have an audience and which will not. Moreover, the FCC's Fairness Doctrine, upheld by the Supreme…...

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Works Cited

Klinenberg, Eric. (2006). Mega-Merger Mania. The Nation. Retrieved December 16, 2008 at  http://www.thenation.com/doc/20060703/klinenberg 

No author. (2008). Hart-Scott-Rodino. Federal Trade Commission. Retrieved December 16, 2008 at  http://www.ftc.gov/bc/hsr/ 

McChesney, Robert W. & Nichols, John. (2008). Who'll Unplug Big Media? Stay Tuned. The Nation. Retrieved December 16, 2008 at  http://www.thenation.com/doc/20080616/mcchesney 

No author. (2008). Telecommunications Act of 1996. Federal Communications Commission. Retrieved December 16, 2008 at  http://www.fcc.gov/telecom.html

Mergers
The hypothesis is that "if managers are rational, mergers should always lead to an increase in shareholder value." In principle, this statement should hold, but there are a couple of pragmatic considerations that must be taken into account. Before examining the nuts and bolts of mergers, the statement needs to be corrected a little bit -- if managers are rational mergers should always lead to an expected increase in shareholder value. ationality does not imply omniscience, so managers can only make decisions based on what they expect will happen, not with perfect knowledge of the future. In other words, if a merger fails to increase shareholder value, that does not imply that the manager failed to act rationally. Now that we understand that, we can investigate the core principles behind the statement.

Agency Theory

The first underlying concept at work in this statement is agency theory. Agency theory lies at the root…...

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References

Agrawal, A. & Jaffe, J. (1999). The post-merger performance puzzle. Advances in Mergers and Acquisitions. JAI Press, Stamford, CT.

Agrawal, A., Jaffe, J. & Mandelker, G. (1992). The post-merger performance of acquiring firms: A re-examination of an anomaly. The Journal of Finance. Vol. XLVIII (4) 1605-1621.

Arthur, W. (1994). Inductive reasoning and bounded rationality. The American Economic Review. Vol. 84 (2) 406-411.

Eisenhardt, K. (1989). Agency theory: An assessment and review. The Academy of Management Review. Vol. 14 (1) 57-74.

The smaller firms therefore may be able to gain entry into the market but are generally unable to compete on quality with the top firms, and this is allowing the market leaders to grow as a result.
Another factor that is taken into consideration is the regulatory entry and exit conditions. In the mobile industry, there is a significant barrier in spectrum. Given that there is a finite amount of broadband wireless spectra available, and potential limits on where wireless towers can be sited, there are limits to the number of players in the market (FCC, 2010) This means that consolidation at the top of the industry could create limitations on the amount of competitors that can enter a given market. The DoJ will take this into account as well.

There are pros and cons associated with this merger. The pros are that the industry will take a more natural shape…...

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Works Cited:

FCC. (2010). FCC 10-81, Fourteenth Report. Federal Communications Commission. In possession of the author.

Investopedia. (2011). Herfindahl-Hirschman Index. Investopedia. Retrieved May 18, 2011 from  http://www.investopedia.com/terms/h/hhi.asp

Merger, Acquisition, And International Strategies
Ford Corporation: The Volvo takeover

It's imperative for the automotive companies to attain benefits of scale whilst developing latest products which is costing exceedingly high in the present business environment. Compared to the 90's the chances of attaining benefits of scale while saving costs has altered quite a bit. Model volumes have declined which creates difficulties for companies to attain economies of scale, while saving costs. Hence, as a last resort, companies merge with each other, acquire and form alliances with each other to save rising costs while developing new technology and products (Lundback, 2002).

Ford Motor Company

The Ford Motor Company is the second leading profitable automaker in the world. Ford has recently acquired the Swedish-based Volvo for $6.45 billion. Fords profits last year were a bit more than that with $6.57 billion. It's yet another quick acquisition among many others. Ford at present has 80 assembly plants…...

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Bibliography

AECOM. (2014, July 13). Retrieved October 13, 2014, from  http://www.aecom.com/News/Press+Releases/_carousel/AECOM+to+acquire+URS+Corporation+for+U.S.$56.31+per+share+in+cash+and+stock 

AECOM Capital. (n.d.). Retrieved October 13, 2014, from  http://www.aecom.com/About/AECOM+Capital 

Asongu, J. (2007). Innovation as an Argument for Corporate Social Responsibility. Journal of Business and Public Policy.

Fairholm, M. (2009). Leadership and Organizational Strategy. The Innovation Journal: The Public Sector Innovation Journal, 2-15.

1. A case study on the impact of social media on consumer behavior
2. Analyzing the success factors of a popular brand through a case study
3. Exploring the ethical implications of a controversial business decision in a case study
4. Evaluating the effectiveness of a company's marketing strategy based on a case study
5. Investigating the challenges faced by a startup company in a case study
6. Examining the role of leadership in organizational change through a case study
7. Analyzing the impact of globalization on a specific industry in a case study
8. Discussing the implications of a major data breach on a company's reputation....

1. Analyzing the Effect of a Global Economic Downturn on Sony Corporation's Key Metrics

2. Exploring the Impact of Technological Advances on Sony Corporation's Performance Metrics

3. Assessing the Consequences of Increased Competition in the Electronics Industry on Sony Corporation

4. Investigating the Influence of Currency Fluctuations on Sony Corporation's Financial Metrics

5. Examining the Effects of Supply Chain Disruptions on Sony Corporation's Key Performance Indicators

6. Evaluating the Impact of Changes in Consumer Preferences on Sony Corporation's Sales and Revenue

7. Simulation of Different Marketing Strategies and their Impact on Sony Corporation's Market Share

8. Analyzing the Effects of Government Regulations on Sony Corporation's Profitability

9. Exploring....

I. Introduction
A. Brief background information on PepsiCo
B. Thesis statement: This essay will explore the history, products, and corporate social responsibility initiatives of PepsiCo.

II. History of PepsiCo
A. Founding of PepsiCo by Caleb Bradham in 1898
B. Merger of Pepsi-Cola and Frito-Lay in 1965
C. Expansion into other beverage and snack categories

III. PepsiCo's Products
A. Beverages
1. Pepsi-Cola
2. Mountain Dew
3. Gatorade
B. Snacks
1. Lay's
2. Doritos
3. Quaker Oats

IV. Corporate Social Responsibility Initiatives
A. Environmental Sustainability
1. Reduction of water usage
2. Recycling initiatives
B. Community Engagement
1. PepsiCo Foundation's grants and donations
2. Volunteering programs
....

1. Analyzing Nestle's diversification strategy: How has Nestle expanded its product portfolio and entered new markets to drive growth and increase market share?

2. The role of acquisitions and mergers in Nestle's corporate strategy: Discuss how Nestle has used M&A activities to drive growth, acquire new capabilities, and enter new markets.

3. Examining Nestle's sustainability strategy: How has Nestle incorporated sustainability and ethical practices into its corporate strategy to create long-term value and achieve competitive advantage?

4. Evaluating Nestle's global expansion strategy: How has Nestle expanded its international presence and adapted its business model to different markets and cultural contexts?

5. The impact of....