Factors Influencing Merger and Acquisition Decisions at Walmart

This research proposal investigates the factors influencing merger and acquisition (M&A) decisions within Walmart, a leading multinational retail enterprise. The study aims to identify factors such as globalization, cost reduction, market penetration, and resource sharing that affect Walmart's M&A strategies. The proposal includes an introduction outlining the significance and rationale for the research, a literature review examining existing studies on M&A, and a detailed research methodology. The methodology section specifies the research method (mix-method approach), research philosophy (interpretivism), research approach (inductive), research design (exploratory), data collection methods (primary data through questionnaires), sampling technique (simple random sampling), sample size (30), and ethical considerations. The research questions focus on identifying key factors influencing M&A, evaluating how M&A strategies enhance business performance, and determining the importance of M&A for Walmart. The literature review examines the impact of globalization, cost reduction, market penetration and the role of M&A in business performance and efficiency, and its importance within the retail sector. The proposal concludes with a brief work plan. This research aims to provide insights into how Walmart can improve its productivity and profitability in the global marketplace through strategic M&A decisions.

RESEARCH PROPOSAL
1

Contents
INTRODUCTION...........................................................................................................................3
Significance.................................................................................................................................3
Rationale......................................................................................................................................3
Aim:.............................................................................................................................................4
Objective......................................................................................................................................4
Research Questions......................................................................................................................4
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................7
REFERENCES..............................................................................................................................10
2

Title: To determine the factors which can influence merger and acquisition of the company.
INTRODUCTION
Mergers and Acquisitions are basically defined as consolidation of two organizations where
merger is combination of two firm in the form of one, while acquisition is one enterprise that
taken over by another.
The research study provides a brief idea about the concept of merger and acquisition by
Walmart retail business that are emerging in global marketplace. The primary aim is to find out
the different factors that would affects on the organization in context of decision making
regarding going for merger and acquisition among Walmart. This thesis is based on the retail
sector which mainly tries to check whether these are significant in case of Walmart.
Walmart is based on the American multinational retail enterprises that operates a chain of
department stores, supermarkets and other type of grocery stores. The organization was founded
in 1963 by Sam Walton. It is the world’s largest firm that will generate more revenue in global
marketplace. there are approximately 2.2 million employees working within organization.
There are four different type of theories used such as resource dependency, neo-classical and
agency, which have been taken into consideration for purpose to find out factors affecting on the
decision. The Neoclassical theory is extended version of classic theory where it help for
identifying behavioural science which gets include management and affects on the performance
of employee. It is mainly considered the different factors such as Globalization, reduce cost,
increase sales, penetrating new markets and sharing resources. The research is useful for retail
sector that must consider important aspects of merger and acquisition whether policy maker can
help in other stakeholders which influence the frequency of merger and acquisition. In this way,
it helps for Walmart enterprise to increase their productivity and profitability in global
marketplace.
Significance
The research will provide a brief idea in term of framework that increase merger and
acquisition decision in Walmart retail business. It will help for researcher to identify an efficient
policies and procedures that will make to increase value of concerned stakeholder on behalf of
merger & acquisition strategy. The researcher will able to find out causes and focus on the
activities of mergers in expansion of project. It is useful for investigation to collect and gather all
relevant information that help for identifying improvement in terms of retail business.
3

Rationale
The research will conduct for examine the factors that directly affecting on the business
performance through merger and acquisition of organization. It will help for researcher to
understand important channel for investment in emerging global world. The purpose of research
is to determine the on-going activities that have slow down process of business growth and
development. The research will improve depth understanding towards the concept of Merger and
acquisition where researcher show the resistance by emerging market at the time of financial
crisis. The reason behind the research is to examine the success and failure of organization.
Aim:
To determine the factors which can influence merger and acquisition of the company A study on
Walmart.
Objective
 To identify the several factors that impact on the merger and acquisition of organization.
 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
 What are several factors that impact on the merger and acquisition of organization?
 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?
LITERATURE REVIEW
Theme:1 identify the several factors that impact on the merger and acquisition of organization.
According to Maas, Heugens and Reus (2019) there are different type of factors that
impact on the merger and acquisition in terms of business performance. It is including
globalization, increasing sales, reduce cost and penetrating new markets etc. these are different
factors that applicable in the organization. In order to drive costs out of various operations. In
this way, it will increase sales and production in global marketplace. As process and product
technologies are becoming important aspects of business that associated with cost as well as
quality for increasing outsourcing. Different factors such as right partnership, good
communication between mergers and acquisition, diligence of good valuation. These factors are
4

generated as positive result that impact on the profit rate of retail sector. As per Meglio and King
(2019) Another way to specify in terms of diversification. It useful for organization to increase
efficiency but reduce cost in competitive environment. It always encouraging the merger and
acquisition to modify their policies and procedures. Therefore, it is invented as get more
competitive advantage. In context of business growth and development. It requires to implement
high technology that influence merger & acquisition for improving economic condition. It can be
possible when retail business enables to compete with other location on certain regions and
enhance the competitiveness of organization.
Theme:2 Merger & acquisition Strategy enhance the overall business performance and
efficiency.
As per Poddar (2019) Merger and acquisition strategy actions which motivation are
completely. Through them acquires to gain complete access of distribution channels,
technologies and market share of target audience. The acquisition can bring to adopt new
capacities of organization that they are considered to inefficient developed on internally. Even it
is increasing the business operation which being undertaken with great enthusiasm by Mergers.
Furthermore, M&A strategy is known as corporate strategies that mainly deals with selling,
buying and combining with multiple organizations to achieve the specific goals. As per Quinlan,
Babin and Griffin (2019). It has devised to transform enterprise strategic plan of business to list a
target acquisition prospective. M&A strategy is promoting the information technology that
consider the factor of manufacturing process and acquire knowledge of industries with
competitiveness growing from application, creation and accumulation.
Walsh and Ajibade (2019) argue that M&A is an important strategic operation that
acquired the information through external growth of business. It enabling to expand organization
in global marketplace while generate technological scope, change path of learning, overcome
barrier due to crisis, integrated with internal resources. In this way, it is the better way to create
capabilities of organization to expand business in entire world. In order to increase the
performance and efficiency of business through Merger & acquisition strategy.
5

Theme:3 Determine the importance of merger and acquisition in the Walmart
As per Kim and Davis (2019) Mergers and acquisitions have become most common
enterprise tool that will implement by various organization in world. It has driven by
shareholder value and not only form new economic, cultural and social environment but also
enable to grow enterprise faster than other competitors.
The importance of M&A in decision making while organization has rapidly growing the
internally as well as externally. In fact, it is important to increase strength, capabilities of
business so that it often to gain access of new product line. In today’s world, Merger and
Acquisitions are essential for corporate development because it is increasing the significance of
intangible assets, customer relationship and skills. Tsui-Auch and Chow (2019) said that M&A
are key elements of corporate strategy that acquired the economic condition while implementing
an effective idea to achieve strategic goal and objective.
In context of growth and development, Merger and Acquisition just like internal investment
which means to maximize the capital base and current assets employed in produce specific item
and services. On the other hand, M&A has significantly impact on the price/cost of capital and
have uncorrelated with financial economic, cash flow. As a result, it is better way to increase
investment opportunities through internal funds.
DePamphilis (2019) Merger can help organizations deals with threat of retail business and
compete with international marketplace. it is beneficial for organization to increase productivity
and profitability in global world. The most common advantage of retail enterprise where mergers
and acquisitions are offered wide range of services and product to customer where increase
visibility of market share.
6

RESEARCH METHODOLOGY
It is defined as an activity that mainly involves finding out on less or more systematic
manner. Research methodology is a type of framework that useful for collecting large amount of
data in project completion (Yavas, Grave and Vardiabasis, 2019). On the other way, it is
considered as a foundation for identifying all necessary data that will be suitable for further
expansion.
 Research Method: it is based on the process, strategy and technique that can utilise the
large amount of data collection and also analyse the evidence of information. In order to
recover new data and also improve better understanding towards research topic. Research
Method can be categorised into different types: Qualitative research method and
Quantitative research method. Qualitative research method is a type of scientific
approach in terms of observation whether collect data of theory aspects. It mainly focused
on the concepts and actual meaning (Quinlan, Babin and Griffin, 2019). On the other
hand, Quantitative method is basically emphasizing the specific measurement of
objective and analysis numerical data or information. The researcher will use mix-method
approach for collecting data through questionnaires and other type of numerical tool like
SPSS for data collection.
 Research philosophy: It can be defined as development of different assumption in
research project that assume about nature, knowledge and behaviour of entire case study.
Research philosophy can be divided into different groups: positivism, realism,
interpretivism and pragmatism.
The investigator will choose interpretivism to understand the interpret element in
case study where it is integrated with behaviour and nature of human towards research
project.
 Research Approach: it is based on the process that mainly consists of different stages in
assumption to analyse and collect data in proper manner. The research approach is an
important part of research study that help to break-down the arguments in different
manner. It can be categorised into different groups: deductive, inductive and abductive
research approach.
7

The researcher will select the inductive approach to measure the different pattern
through observation. Researcher is mainly focused on the formulating researcher
questions and specific objectives.
 Research Design: It is a type of framework that consists of various techniques by
researcher to combine with different components in logical manner. Researcher will use
research design as develop a specific plan to analyse data or information (Kogan,
Mayhew and Vasarhelyi, 2019). There are different ways to categorise into exploratory
and conclusive.
Researcher will use exploratory design that helpful for generating insight about
the situation. It is based on the previous theory to understand depth knowledge and gain
idea for further expansion. With the help of mixed approach, it will be generating the
specific solution through numbers. It will generate accurate result or outcome.
 Data collection Method: It is a type of method for collecting data from authenticate
source to calculate accurate answer and resolve research problems. There are different
types: primary and secondary data collection method. Researcher will use primary data
collection for gathering information through questionnaires.
The primary data collection method is useful for identifying authenticate data or
information related the research case study.
 Sampling: It is described as a specific principle that can be used to select the participant
in research project. It has been noted that consider the number of populations. therefore,
researcher will use simple random technique to select particular member in research
project. It also obtained the samples taken from large populations. The Sample size is 30.
In order to divide work for equal members in research study where everyone participate
to collect information or data.
 Ethical consideration: it is based on the principles and values that addressed research
question. In this way, it can be considered as a major part within case study to maintain
the proper dignity in proper manner. There are common point represents that related to
ethical consideration in following ways:
1. It should require to maintain the environment so that participate feel free to
analyse or collect relevant information (Kumar, 2019).
2. It will require to provide equal opportunity of members and also maintain dignity.
8

3. The participant must be involved in the research area where understand the
implication of members to reach on specific conclusion.
 Validity and reliability: It mainly refer to the same type of answer that can be obtained
through instruments. Sometimes, researcher will associate with high level of reliability to
generate specific result or outcome. The researcher will determine to check validity and
reliability of research project whenever collect the information through authenticate
source which provide an accurate data.
9

REFERENCES
Book and Journals
DePamphilis, D., 2019. Mergers, acquisitions, and other restructuring activities: An integrated
approach to process, tools, cases, and solutions. Academic Press.
Kim, D.Y. and Davis, S.M., 2019. Acquisition experience and production resource efficiency:
Evidence from US manufacturing industries. Journal of Manufacturing Technology
Management. 30(4). pp.772-795.
Kogan, A., Mayhew, B.W. and Vasarhelyi, M.A., 2019. Audit Data Analytics Research-An
Application of Design Science Methodology. Accounting Horizons.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Maas, A.J.J., Heugens, P.P.M.A.R. and Reus, T.H., 2019. Viceroys or emperors? An institution‐
based perspective on merger and acquisition prevalence and shareholder value. Journal of
Management Studies. 56(1). pp.234-269.
Meglio, O. and King, D.R., 2019. Family businesses: Building a merger and acquisition research
agenda. In Advances in Mergers and Acquisitions (pp. 83-98). Emerald Publishing
Limited.
Poddar, N., 2019. A Study on Mergers and Acquisition in India and Its Impact on Operating
Efficiency of Indian Acquiring Company. Theoretical Economics Letters. 9(4).
Quinlan, C., Babin, B. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Tsui-Auch, L.S. and Chow, D., 2019. MNEs' Agency Within Institutional Contexts: A Study of
Walmart's Post-acquisition Practices in Mexico, Germany, and Japan. Journal of
International Management. p.100655.
Walsh, P.R. and Ajibade, O., 2019. Determining the efficacy of consolidating municipal electric
utilities in Ontario, Canada. International Journal of Energy Sector Management. 13(2).
pp.298-317.
Yavas, B.F., Grave, K. and Vardiabasis, D., 2019. Diversification strategies and equity market
performances. Review of International Business and Strategy.
10