Analyzing Factors Impacting Mergers and Acquisitions: Walmart

This research project investigates the factors influencing mergers and acquisitions (M&A) within the business context, focusing on Walmart as a case study. The study aims to identify the key drivers of M&A, such as cost management, competition, resource availability, and strategic alignment. The research employs both qualitative and quantitative methods, including primary data collection through questionnaires analyzed using SPSS, and secondary data from books, journals, and articles to build a theoretical framework. The report examines Walmart's strategic decisions in M&A, its market position, and overall performance. The findings provide insights into the success factors and challenges of M&A, offering recommendations for businesses seeking growth through acquisitions and mergers. The research explores the importance of M&A for Walmart's growth and competitive advantage, considering factors like globalization and market expansion. The project includes an introduction, literature review, methodology, findings, data analysis, and conclusion, offering a comprehensive understanding of M&A in the retail sector.

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).

Industry and Sector Overview
In this research undertaking the overall study is based on retail industry, thus it is
recognised to be the most developed industry which is contributing a lot in the economic
development of a country. As per the opinion analysis of Jemma Smith, 2019, it has been
stated that, the retail is recognised to be the vital to the UK economy as it generated around
£381 billion worth of retail sales, which shown a higher development of retail industry in
UK. Therefore, the people employs in UK retail is around 2.9 million which is high rate than
the other industry, so the growth of retail industry in UK is so high. Walmart is a large retail
business in which is operated by its chain of supermarkets, grocery stores and discount
department stores (Ellickson and Grieco, 2013). Thus, thus the company was founded in the
year of 1962 by the efforts of Sam Walton. Walmart was recognised as the world’s largest
retail company by its revenue which is around 523.964 billion. Furthermore, the key motive
of the business is to attaining higher grwotha nd success via the help of implementing
effective business strategies that are significant for generating higher growth and
development of the business. As a large supermarket chain Walmart has large number of
competitors like Costco, Walgreens, Amazon, Kroger, Tesco, Home Depot and so on, thus,
these are the major competitors of Walmart which influences the overall sell of the business.
As the large and most recognised brand the primary obligation of Walmart is to be on
the higher position and for this the business has concern over using low price philosophy for
the intention of grabbing the attention of larger of buyers and gain higher profitability and
growth. In addition to this, for the intention of growth the company is focuses over executing
their operations via merger and acquisition as Walmart has acquire online store flipkart for
the intention of exploring their operations and attain higher growth and success (Li, and Liu,
2012). Walmart is operated through its retail store and the online sites, thus the company is
segmented customers on the basis of demographic aspects thus, the company is targeted
people on the basis of their income status, thus the company is mainly targeted to Individuals
and households with low incomes and middle and providing them effective facilities to attain
growth. Walmart has bought Flipkart for around 16 billion, therefore, they acquired 77
percent stake in the Flipkart, thus, this deal is effctiv in the terms of generating more
economic development for the country and the business as well. Walmart with its expertise in
retail management that would be significant for Flipkart in providing edge over its
competition, therefore, Flipkart is likely to get access to newer markets which involve the
enhancement of economy entirely, hence, The infusion of fresh funds will help Flipkart to

expand its operation at global level. Thus the merger and acquisition is significant for
Walmart in enhancing its peroformance and productivity to attain high progression via
fulfilling the desires of the customers. However, Walmart is focuses over implementing
warehouses for the purpose of delivering best and fast facilities to the customers.
Theory relating to the concept under investigation
The present study mainly initiates to analyse the importance of merger and acquisition
in the growth and success of the business, thus, in this evaluation is based on assorted
theories that are very much significant for this analysis, therefore, resource dependency
theory, neo classical theory are termed to be the appropriate theory for this evaluation, The
suitable explanation are associated as under:
Resource Dependency Theory: Resources dependency theory is mainly encompasses over
the principles which a business requires to be engaged in transaction with the other
organisations in its environment to acquire resources, thus this theory is effective for the
businesses to provide suitable direction in the acquiring right source for the significant
growth of business via managing business operations as resources are required for the better
execution of the business (Roberts and Berg, 2012). Resources which the business requires
may be scarce not always readily considerable or under the control of uncooperative actors.
Therefore, In other words, this theory mainly determined the interconnection among
businesses and the products they required to operate. Resources come in many forms,
likewise raw materials, financing, and employees. Acquiring these external resources is an
essential component for strategic and tactical management for any organsiation. However,
This theory is significant for Walmart in acquiring the suitable business for the intention of
arranging suitable assets to explore their operations within wider area and generate higher
profitability and growth. For instance: Walmart is acquiring Flipkart and implement its
resources to generate more value to the form via developing its online presence. Hence, this
theory is imperative in the context of Walmart as it supports the entire business via acquiring
the external resource like employees, raw material, finance and so on, therefore, this would
be significant in the terms of executing business operations in the light of appropriate
available of resource that might helps in enhancing the overall functionality of the business.
Neo classical Theory: This recognised as the extended version of the classical theory in
which the behaviour sciences gets involve in the management. As per the analysis of this
theory, is has been stated that, business is evaluated as the social system which is mainly

affected through the human action. The neoclassical theory was also defined as an attempt at
incorporating the behavioural science among management via in respect to resolve the issues
created through classical theory practices. Therefore, the premise of this aspect was mainly
encompasses over the idea that the role of management is to use employees in the manner of
getting things done in suitable manner, rather than concerning over production, structure or
technology. Entirely this theory is mainly concern with the employees. This theory is
imperative for Walmart in building appropriate inter relationship among the businesses and
execute suitable operations that are generating value for the both businesses (Sethi, 2014).
However, the theory is significantly be implemented by Walmart for guiding the management
in making the suitable use of employees, thus this theory helps the business and its
management in using the human resource in right manner to getting things done. This theory
is mainly based on human perception, thus, It revealed the importance of social and
psychological aspects in evaluating the worker’s productivity and satisfaction. With the help
of this theory Walmart implement suitable interconnection among the employees and the
businesses as well which might be effective in turns of creating value for the business in
improvising their operations globally and also assist the functions in the direction to gain
success.
CONCEPTUAL DEVELOPMENT
The several factors that impact on the merger and acquisition of organisation.
As per the views stated by Chirantan Basu, 2017, Merger and acquisitions are the
transactions within that companies ownership as well as M&A can allow business firm to
grow or downsize and also changing nature of business or their competitive position. In
addition to this, mergers is defined as the term when two businesses are decide to combine
their operations on the other side, when a business acquire another business, than it is called
acquisition (DePamphilis, 2019). Therefore, merger and acquisition both are resulted in
collective entity, thus, M&A is recognised to be the significant aspect which provides a wider
opportunity to the businesses to attaining higher growth and success. In market there are
assorted factors like strategic fit, cost of the business, revenue synergies, access to talented
employees, investment needed, cash flow management, tax burden, operations efficiency and
so on, thus, these are the key aspects that influences merger and acquisition of the business.
Therefore, these all factors are needs to be considered by the businesses to conduct suitable
execution of the operations. As per the opinion analysis of Romona Paden, 2019, Strategic fit

is evaluated as the factors which affects the merger and acquisition of the business does it is
very much considered by the businesses to be focused towards their business strategies as it is
important for the businesses to develop an effective business strategies so that operation
implementations can be held in the right manner and growth can be attained so it is important
for the business who are going for merger and acquisition needs to analyze the business
strategy implementing most suitable strategy which is significant for the growth of the
business (Kumar, Anand and Song, 2017). In addition to this cash flow management is also a
major factor which is needs to be resolved by appointing an appropriate manager who is
having appropriate skills to manage the cash as it is required for the business or its
management to use the cash and resources at the right place so that implementation of the
activities can be assisted in right manner. Further more investment needed is also a major
factor as for the growth it is required for a business to obtain appropriate investment so that
suitable activities can be conducted in addition to this businesses are also facing the issue of
hiring appropriate talent at workplace and with the help of merger and acquisition the
resistance of the activities are removed and businesses are probably executing their
operations in well executive manner to attend more sustainability within market.
Merger and acquisition Strategy enhance the overall business performance and efficiency
According to the opinion analysis of LEE FREDERIKSEN, 2020, Merger and
acquisition are recognised to be the most popular business strategy that are considered by the
businesses to expand into a new market or territories to gain higher competitive advantage
and acquire new technology and skill sets that are beneficial for the success of the business
therefore merger and acquisition has plays important role to providing significant direction to
the businesses to get involved with each other and execute their operations in a liable manner
to attain growth (Zingales, 2017). In addition to this merger and acquisition are also defined
as the corporate strategies which are deals with buying selling or combining different
businesses with a goal to continuous development. However the intention of merger and
acquisition are needs to be considered after recognising a few facts like the current business
status and the present market scenario, threats and opportunities within the market the
valuable market share the strategies implemented by the businesses and so on. The success of
merger and acquisition is mainly encompasses over the strategy which are adopted by the
businesses related with merger and acquisition therefore it recognised as the roadmap for a
corporate development efforts of an organisation action the strategies on merger and
acquisition are devised to transform the strategic business plan of the organisation to a list of