One of the hottest topics in the business

Running head: MANAGEMENT
Management
Name of the Student:
Name of University:
Author Note

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MANAGEMENT
Discussion: Mergers
One of the hottest topics in the business press are rumors of major corporations
merging together. Just as the entertainment press likes to report on rumors of
celebrities who are dating, the business press likes to speculate about “corporate
match-making”. For example, Whole Foods was subject to rumors about several
potential suitors including supermarket giants such as Kroger, Albertson’s, and
Walmart. But the world was somewhat surprised when a merger deal with Amazon
was announced, as this seems like a bit of an “odd couple”.
Go to Google news or other news search engines and see what the latest merger
rumors are. Pick one of the merger rumors that seems the most unusual to you –
one that makes you wonder why these two companies think they are a good match
for each other. Share the link to the article with your classmates, and discuss the
following issues:
1. Is this merger horizontal? Vertical? Conglomerate (unrelated diversification)?
2. Why do you think these companies would or would not make a good match?
3. Do you think this merger will actually go through? Or won’t get beyond the
gossip stage?

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MANAGEMENT
Globalization has given way to expansion of businesses. There has been
considerable growth and expansion of businesses across countries. This has also led
to strict competition between companies. Similar products and services are offered
by companies in a business environment, which often makes the external
environment in which he companies operate, very competitive in nature (Herger
and and McCorriston 2016). Therefore, in order to grow, some bigger companies in
the market makes attempt to merge with other companies to increase market share
in the market and gain competitive advantage in the industry (Green 2016). Merger
and acquisition is an effective strategy which is made use of, by companies to
capture the market.
One of the potential mergers which is being speculated and can be actualized
in future is the merger between Apple and Netflix. It has been anticipated that there
will be a merger happening between the companies which will give way to
production of shows by Apple on television and on digital platforms. This might
bring Apple even closer to the customers as Netflix is dearly held by the audience,
which will ascertain deeper penetration of Apple among customer base.
The merger which is being speculated between Apple Inc. and Netflix is a
conglomerate as Apple and Netflix produce different products which are offered in
the market. The two businesses have diverse customer base and engage in
activities which are unlike each other’s (Herger and McCorriston 2014). Therefore, two
similar groups are not coming together to enhanced the established businesses.
The two companies operate in different sectors which do not even make them rivals
to one another.

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MANAGEMENT
It can be anticipated that Apple Inc. and Netflix will come together to form a
mixed conglomerate which will help them achieve market extensions in the market.
From the perspective of shares and market, wealth is a possible factor which has
brought might compel the two brands to come together and develop a synergy in
the industry (Bena and Li 2014). This might prove to become extremely beneficial
for the two companies. Apple can provide Netflix services at intensely discounted
rates to the Apple phone and television users. This might help them increase
number of stakeholders and revenue collection in the market. The venture will be a
successful one, as it is expected to be actualized soon.