Factors Influencing Merger and Acquisition: A Study on Walmart

Research project

Executive Summary
The present study initiates to determine the factors that influence the merger and
acquisition of the business, thus, this is a wide area of writing which is imperative in
exploring individual’s recognition in regards to the area of merger and acquisition. Therefore,
the M&A is considered to be the wider aspect which is mainly influenced by the assorted
aspects like cost management, higher competition, resources availability, suitable business
strategy, product range and so on. In this existing evaluation of overall study is relay upon the
analysis of Walmart, thus it is a largest American multinational retail corporation which
mainly operates through its chain of hypermarkets, discount department stores. Therefore, the
study states that, the key motive of each small as well as large enterprises is to attaining
higher growth and for that merger and acquisition is recognised to be the best way to explore
operations within wider area. In this existing exploration the study is based on both
qualitative and quantitative aspects as this supports the work via accumulation of detailed
evaluation. Furthermore, primary as well as both secondary tools are applied in the manner of
gathering valuable data. Thus, primary investigation is being executed via conducting
analysis through develop SPSS with the support of gathering information through
questionnaire. On the other side, secondary sources like books, journals, articles and so on are
effective in generating effective theoretical framework which explores understating. In
addition to this, conclusion and recommendation are drawn over the findings of the research
which provides summary over the outcome and appropriate suggestions that will be
significantly beneficial for the business in gaining success.

Table of Contents
Executive Summary...................................................................................................................2
Title:...........................................................................................................................................4
INTRODUCTION......................................................................................................................4
Overview of the Research......................................................................................................4
Background of the Research..................................................................................................5
Rationale of the Research.......................................................................................................5
Research Aim.........................................................................................................................6
Research Objective.................................................................................................................6
Research Questions................................................................................................................6
Structure of the Project...........................................................................................................6
LITERATURE REVIEW...........................................................................................................8
Introduction............................................................................................................................8
Industry and Sector Overview................................................................................................8
Theory relating to the concept under investigation..............................................................10
CONCEPTUAL DEVELOPMENT.........................................................................................11
RESEARCH METHODOLOGY.............................................................................................14
FINDINGS & DATA ANALYSIS..........................................................................................17
CONCLUSION & RECOMMENDATION............................................................................38
Conclusion............................................................................................................................38
Recommendation..................................................................................................................39
REFERENCES.........................................................................................................................41
Appendix..................................................................................................................................43

Title:
To determine the factors which can influence merger and acquisition of the company.
INTRODUCTION
Overview of the Research
The current project access the knowledge about the factors that can influence merger
and acquisition of the business, thus, this is wide academic writing which is acknowledged
for the intention of finalising the suitable aspects that encourage merger and acquisition of the
business. Merger and acquisition is simply term utilise for describing consolidation of
business form or assets by using several type of financial transactions including merger,
acquisitions, consolidations, tender offers as well as purchase of assets and management
acquisitions. Along with this, from legal point of view merger is simply legal consolidation of
two entities within one. On the other hand, acquisition occurs when one entity result in
consolidation of assets as well as liabilities within one entity (Gomes and et. al., 2011).
Therefore, M&A are mainly motivated through the expected synergy among the target and
the acquiring firms, some mergers are successful while others are not. There are assorted
factors like market share, competitive position, income, investment needs, operational
efficiency, tax burden, cash flow management, higher profitability, wider market base and so
on, that influences the merger and acquisition of the business. However, these factors are
needs to be considered by the businesses in making effective merger and acquisition of the
business. In simple term it can be said that distinction among merger and acquisition is not
clear. Present company is now focusing on enhancing their business as well as profitability
through merger and acquisition. In relation of respective investigation best suitable aims,
objectives as well as research questions towards same are described below within same
section. In this present study the overall analysis is based on retail industry which are mainly
concern over whether these are important in the case of providing significant benefits to the
retail business, thus in this the study has been executed over Walmart Inc. Therefore, it is a
large American multinational retail corporation that operates a chain of hypermarkets,
discount department stores and grocery stores. Here are assorted theories are implemented
like in which resource dependency, neo-classical and agency are involved, thus, these may
have taken into actual action by the businesses for the intention of determining the aspects
that are influencing the decision of merger and acquisition. Furthermore, It encompasses over
assorted factors like Globalisation, reduce cost, increase sales, penetrating new markets and

sharing resources. The existing investigation is valuable for the retail sector, thus the retail
businesses are considering merger and acquisition as their key aspect where whether policy
makers can help the stakeholder to get more benefits via the significant use of merger and
acquisition (Thanos and Papadakis, 2012). Thus In this way, it helps for Walmart enterprise
to increase their productivity and profitability in the global marketplace.
Background of the Research
The present project aim to determining the factors that influences merger and
acquisition of the business, therefore, merger and acquisition are defined to be the imperative
aspect which plays a vital role in providing wider opportunity to the businesses to conduct
organisational activities in right manner to gain higher growth and success. In this present
exploration work, the overall study has been developed to determine the potential factors that
influence merger and acquisition, Thus the overall study is based on the case study of
Walmart. It is a famous large American Multinational corporation which has its operations all
around the globe and operated through its chain of hypermarket, grocery stores and so on
(Rottig, Reus and Tarba, 2014). The headquarter of the firm is in Bentonville, Arkansas,
United States. The company has strated its operates from the year of 1962 by the potential
efforts of Sam Walton and the company was incorporated in the year of 1969. The company
is having around 2.2 million employees from the world wide and contributing their potential
efforts in the growth and success of the business. Walmart is a large supermarket chain which
has concern over attaining higher growth and merger and acquisition is determined to be the
key aspect which provide wider market base to the businesses to operates in more efficient
way to gain progression and advancement. Therefore, Walmart is seeking for merger and
acquisition for the intention of attaining higher growth and competitive edge.
Rationale of the Research
The research into consideration is based on evaluating the factors that can influence
merger and acquisition of the business, thus, the present recognition is a wide academic
research which has imperative value in developing the knowledge and skills of people in
relation to the area of merger and acquisition (Green, 2016). The key purpose of this research
is that merger and acquisition are the major considered area and recognise to be a major issue
for a business and knowledge in this area is sufficient for industry or a business in the manner
of conducting suitable business operations therefore the study is effective in providing wider
knowledge in regards to the factors that are influencing the aspect of merger and acquisition
in a business as in this the overall analysis is based on Walmart as this study is efficient for

Walmart in conducting suitable business operations with the appropriate guidance of merger
and acquisition as business is now more able to know about the potential benefits and the
cons that are being faced in the execution of merger and acquisition for the success of
business. In addition to this the study is also important in providing by the academic and
business knowledge to the individual who is interested in the similar area as this area
develops personal and professional skills of people that would be efficient for them in
attempting their future projects and more reliable manner. Furthermore the another intention
of executing this analysis is to determine the failure and success of Walmart by the
emergence of merger and acquisition as their key strategic step thus the study is significant in
exploring all the potential aspects related with merger and acquisition in detail manner which
would be efficient for Walmart and the businesses that are also belongs from the similar
industry.
Research Aim
The key aim of this present research is “To determine the factors which can influence
merger and acquisition of the company: A study on Walmart.”
Research Objective
The significant objectives of this present research are evaluated as below:
 To identify the several factors that impact on the merger and acquisition of
organisation.
 To examine that merger and acquisition Strategy enhance the overall business
performance and efficiency.
 To determine the importance of merger and acquisition in the Walmart.
Research Questions
The appropriate questions that are significant to assist the overall investigaton in right
manner are described as under:
 What are several factors that impact on the merger and acquisition of organisation?
 How can you examine that merger and acquisition Strategy enhance the overall
business performance and efficiency?
 What is the importance of merger and acquisition in the Walmart?

Structure of the Project
This perceived to be the significant recognition of the researcher as it is strong in
building up a suitable layout detail to the researcher to execute all the examination activities
in appropriate way. In the execution of this current examination over the zone of determining
the factors which can influence merger and acquisition of the company,, thus it is an effective
investigation area and needed a well structure to execute all the activities in effective manner
to draw valid and reliable outcome (Nelson, 2018). The appropriate sections of this specific
examinations are related as under:
Chapter 1: Introduction
This is the essential phase of an investigation as it decided the significant aim of
directing the investigation by means of creating point and goals of the exploration, Therefore,
in this segment a short outline has been created to give information with respect to the
examination region and a concise foundation of industry has additionally be created to
present the portion where examination is led. This segment additionally includes the extent of
study and method of reasoning which principally decided the potential explanation behind
directing the investigation.
Chapter 2: Literature Review
This is the second phase of an investigation as it is huge in creating inside and out
information with respect to the examination territory through making literature review,
therefore, this section of the research is effective in developing individual understating in
relation to the chosen study area via the suitable assistance of authors and writers opinion
who have already conduct analysis over the same area (Moeller and Brady, 2014).
Subsequently, this segment of examination is basically gathered via the already conducted
study as in this major sources of information accumulation area books, articles, diaries and
predominantly past examinations that depend on comparable zone of work.
Chapter 3: Research Methodology
Research methodology is additionally perceived to be the another key zone which is
predominantly imperative over choosing the most appropriate philosophy to help the work in
right way. In this way, this segment fundamentally consolidated over numerous applications
like research methodology, research design, research approach, philosophy, data collection
tools, data analysis technique, data sampling and so on. In this way, the reasonable choice is

required to help the work in right way to coming to at the key outcomes as this segment needs
avocation of settling on decision of a specific technique. Therefore, in the present
investigation context based on evaluation of different factors can influence merger and
acquisition of the company, suitable selection of methodologies are required to assist the
overall investigation in right manner to drawn appropriate outcome (Ishii and Xuan, 2014).
Chapter 4: Data Analysis and Interpretation
Data analysis and interpretation is defined as an imperative area which is mainly relay
upon determining the investigation information is appropriate way to generate accurate
outcome. Therefore, this section of the investigation is suitable in providing assistance to the
investigator to generate valuable outcome, In the context of this present undertaking, primary
research is being taken into consideration to genera actual result as in this, survey has been
executed with the assistance of questionnaire as in this interpretation is mainly in-corporate
over determining the evaluation of questionnaire.
Chapter 5: Conclusion and Recommendation
This is additionally an another key zone of an examination as in this conclusion and
recommendation are drawn over the result of the exploration, hence conclusion has been
drawn over the consequences of data, thus, investigation as this sum up the result of
examination in compelling way. Therefore, conclusion is effective in providing overall
summary of the project that incorporates through the findings of the research (Baker, Pan and
Wurgler, 2012). On the opposite side, information analysis is noteworthy in giving
recommendations in regards to the change that are reasonable for a business or industry.
LITERATURE REVIEW
Introduction
Literature Review is effective in developing understanding of individual in relation to the
are of analysing the factors which affects the merger and acquisition of the business, via the
help of gathering information via books, journals, articles and so on. Therefore, the potential
intention of this section in research is to explore individual knowledge in regards to the area
of merger and acquisition with the help of gathering information from the secondary sources
(Bezuidenhout and Kleynhans, 2015).