Homework Question on Merger, Acquisition and International Strategies
- Choose two (2) public corporations in an industry with which you are familiar – one (1) that has acquired another company and operates internationally and one (1) that does not have a history of mergers and acquisitions and operates solely within the U.S.
- Research each company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
- Write a six to eight (6-8) page paper in which you:
- For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
- For the corporation that has not been involved in any mergers or acquisitions, identify one (1) company that would be a profitable candidate for the corporation to acquire or merge with and explain why this company would be a profitable target.
- For the corporation that operates internationally, briefly evaluate its international business-level strategy and international corporate-level strategy and make recommendations for improvement.
- For the corporation that does not operate internationally, propose one business-level strategy and one corporate-level strategy that you would suggest the corporation consider. Justify your proposals.
- Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
- Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format.
Homework Answer on Merger, Acquisition and International Strategies
Organizations develop several strategic measures meant to increase sales and augment a market share in their sector. One of the strategies is acquiring or merging with another company to strengthen their economic and financial performance. Merger and acquisition (M&A) refers to combining different companies that have similar entities in a move to concentrate their resources towards effective production and sale promotion (Gattiker, 2007).
Merging is slightly different from acquisition because it refers to a consolidation of two firms while acquisition involves a company taking over the other by up taking their stock (Gattiker, 2007). M &A is a legal method that involves restructuring both companies’ strategies so that they can formulate joint organizational objectives and goals (Collis & Montgomery, 2005). Several companies in the United States, both public and private, have merged or acquired one another to implement their interests and organizational goals.
Therefore, this paper explores two public companies where one has had an acquisition and another one has never acquired or merged with another company. In light of this, the Walt Disney Company is a public traded company that acquired ABC Inc. (The American Broadcast Corporation) in the year 1995 whiles the United States Postal Services (USPS) does not have a history of M &A. These two public corporations are explored in this study to provide an insight regarding M &A as business strategy.