Ask a question from expert

Ask now

Merger and Acquisition Assignment

21 Pages6090 Words281 Views
   

Added on  2020-03-23

Merger and Acquisition Assignment

   Added on 2020-03-23

BookmarkShareRelated Documents
Running head: MERGER AND ACQUISITIONMerger and acquisitionName of the student:Name of the university:Author note:
Merger and Acquisition Assignment_1
1MERGER AND ACQUISITIONBrakman, S., Garretsen, H., Van Marrewijk, C., & Van Witteloostuijn, A. (2013). CrossBorder Merger & Acquisition Activity and Revealed Comparative Advantage inManufacturing Industries.Journal of Economics & Management Strategy,22(1), 28-57.IntroductionPartnerships are needed by companies and organizations for enhancing the productivity.Partnerships can be between two companies or organizations from the same firm. It can also bebetween the companies and organizations from the different industries and firms. Sometimecorporate partnerships take place between two different countries, which are merge into one fortyaking the company or organization to the peak of success. Herein lays the correlation with theterm “cross boarder”, as in the name of the article (Brakman et al., 2013). In economics, thesepartnerships are defined as mergers and acquisitions. Problem statementThis article talks about the aspect of enjoying competitive advantage, which is impossibleif the companies and organizations, especially the manufacturing industries, expose alackadaisical attitude towards the regulation of the financial cost. Inability in this direction addsvulnerability to the market position of the industry, nullifying the aspect of competitiveadvantage. Attaching the aspect of cultural diversity in this context, carelessness compels thepersonnel to lose track of cash flows from the internal environment to the external ones. Thismakes the whole management chaotic. Chaotic management aggravates the complexities of themanagement of the manufacturing industries in terms of making plans for indulging in mergerand acquisitions (Brakman et al., 2013). In some times, due to the financial instabilities, the
Merger and Acquisition Assignment_2
2MERGER AND ACQUISITIONimplementation of the proposed plans is delayed, which destroys the balance between theexecution of the business activities. Critical conclusive approach to the article This article emerges successful in enhancing the preconceoved knowledge of thereaders in terms of indulging in overseas partnerships for completion of the projects at hand. Thefocus of the article is on the oligopolistic market trades and transactions, where there are limitednumbers of sellers. This limitation makes it easier for the business critiques to estimate therequired partnerships for producing lucrative products for achieving customer satisfaction. Here,the focus on the manufacturing industries seems justified. Viewing it from the other perspective, limited number of sellers reduces the intensity ofcompetition to a large extent (Brakman et al., 2013). Countering this, the inter competition isaggravated, which reflects the attempts of the sellers to indulge into mergers and acquisitions,which would seem profitable for them in terms of enjoying competitive advantage over thecontemporary brands. Within this, the article sheds light on the cross cultural differences, whichgenerates conflicts between the personnel. These conflicts destroy the purpose of indulging intocontracts, trades and transactions, which brings illegal aspect into the discussion. This sometimesgoes to the extent of life risk and property losses, which contradicts the inner essence of mergersand acquisitions. Under such situation, the sellers are compelled to exit from the market field,which adds vulnerable to their market position (Brakman et al., 2013). Here, there is a need forrestructing strategies, which proves beneficial in terms of restoring the hard earned marketposition.
Merger and Acquisition Assignment_3
3MERGER AND ACQUISITIONEven in the introduction of alternative strategies, conflicts can be generated. Hereexample can be taken of the Warner Music Group, for which the phrase, “rags to riches” isappropriate. The major drive behind this is the story, how the music group restored theirpopularity amoung the public domain. Annual revenue of $3 billion enlisted Warner MusicGroup among the big four music company dealing with recording. Adherence to the terms andconditions of the firms aligned with its royalty in terms of the financial payments. Piracy andaggressive pricing compelled the company to encounter severe financial loss in terms of therevenue. Along with this, bankruptcy was an addition to this financial crisis. Music broadcastinghas become popular in the latest trends, of which the cellphone ringtone is a modern example. Similarly, the start ups, under such crisis phase needs alternative strategies to restructuretheir business. One of the ways can be the achievement of negotiation, which possessesflexibility to maintain the stability in the relationship between the buyers and sellers. Firmness inthe means of negotiation enables the personnel to regulate the bidders and the prices, which theyset for the products and services in the auctions (Brakman et al., 2013). The process of auctiongains an important position in this chapter. It is viewed as one of the effective means of settingthe highest price for selling the business. Countering this, setting high price deprives thebusinessmen of the middle class investors, who lack the needed affordability. Herein lays theappropriateness of the characteristics of auction as chaotic and time consuming. However, withthe help of auctions, the businessmen can enhance the marketing activities, which are intangibleand difficult for appraisals (Brakman et al., 2013).
Merger and Acquisition Assignment_4
4MERGER AND ACQUISITIONRecommendation for solving the problemAuction might seem an interplay with the traditionalism of the companies andorganizations, but viewing it from the other perspective, it is an attempt towards providing thestart ups with an opportunity to add firmness in their business. Delving deep into the aspects, it isthe start ups, which needs mergers and acquisitions to slowly and gradually stabilize theirposition in the market. Theoretical, rational and conscious approach towards this stabilization isan added advantage for the companies and organizations, especially the manufacturing industriesin terms of securing the market position and enjoying lucrative competive advantage. However,the path to success is not so easy and is full of hurdles, which attack the start ups in the form ofbankruptcy, reorganization and liquidation. These financial aspects are the last options for thefirms, which have failed to satisfy the needs, demands and requirements of the stakeholders andshareholders. These options are enough to adopt the exit procedures. Strategic vision towardsthis method proves beneficial in terms of restructuring the business scenario through alternativemeans (Brakman et al., 2013). Valuation of the steps undertaken is needed in terms of exposing rational behaviortowards the execution of the marketing activities. Theoretical approach towards these aspectsenhances the clarity of the businessmen in terms of predicting situations like bankruptcy.Carrying out in-depth studies about this theoretical approach reflects the approach of thebusinessmen towards mitigating the stress of the personnel, due to the incapability to live up tothe expectations of the stakeholders and shareholders. Study Guides are an inspiration for theaspiring start ups to develop their knowledge about how to deal with the situations likebankruptcy. The websites possess flexibility for establishing contacts with the experiencedpersonnel for solving the doubts regarding the financial issues.
Merger and Acquisition Assignment_5
5MERGER AND ACQUISITIONReflectionThis assignment emerges successful in providing an insight into the dynamics of mergers andacquisitions. I think critical apprisal of the article is apt in terms of enhancing the clarity of thebusinessmen regarding the efficient and effective means of securing their market position.However, I feel that emphasizing on the manufacturing industry individually deprives the otherindustries from hiring the appropriate mergers and acquisitors for fulfilling the identified and thespecified goals and objectives. Countering this, in terms of the time and the financial constraints,referring to one particular industry acts as a lesson for the other industries in terms of applyingrational thinking for indulging into merger and acquisitions. One of the aspects, which drew my attention is the aspect of cultural diversity. This is dueto the aspect of “cross boarder” in the title of the article. Cultural diversification is an agent ofbusiness expansion, appropriate calculation and evaluation of which enables the businesspersonnel in adding maximum value to the profit margin add enjoying lucrative competitivemargin as compared to the contemporary brands (Brakman et al., 2013). Here, mention of theimportance of mergers and acquisitions enhances the awareness of the readers. Within this, theinclusion of challenges, integrated structures of the deals, financing and valuation and execution,enables the businessmen in terms of its usage in the developing and developed countries. Usageof the term “local country” projects the approach of the native country towards mergers andacquisitions. I think organizing frequent group discussions, involving the personnel from differentcultural backgrounds would be beneficial in terms of mitigating the workplace conflicts.
Merger and Acquisition Assignment_6

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Trends in Agriculture Industry
|7
|1850
|435