Merger, Acquisition, and International Strategies - Essay Example

? Merger, Acquisition, and International Strategies The corporation that has acquired another company, merged with another company and the strategy that led to the merger to determine whether or not this merger was a wise choice According to research, mergers and acquisitions are common events in any economic setting (Buckley, 2002). Whether the markets are active or down, or the contracts are pleasant or intimidating, mergers and acquisitions can be the main component of a corporation`s strategy to develop extra value and make the most of sustainable competitive edge. In the current marketplace, there are a number of factors that are driving great levels of mergers and acquisitions and they include powerful corporate balance sheets, cash wealth organizations seeking to merge their business situations, as well as low interest charges that permit greater advantage. Therefore, every organization or business should anticipate to be tangled in a merger or acquisition at some point in time. This is basically true for businesses or people living in America, where deal practices outpaces the rest of the world in terms of volume and size. This research aims at discussing various issues concerning merging, acquisition, and international strategies. Cisco Corporation acquires organizations that provide eye-catching technologies, goods, or market prospects and this has been a major growth strategy for this company. To assist merge this corporations quickly, constantly, and slight disruption, Cisco has developed cross efficient groups, distinct mutual philosophies, as well as developed value procedures. This well-organized method to integration permits Cisco the capability to attain speedily the value anticipated from the acquisition, among other benefits. Cisco consumers can learn from Cisco`s real world involvements in this part to assist upkeep the same enterprises requirements (Satu, 2012). Acquiring other organizations is a vital strategy for Cisco Corporation to quickly provide new products, reach fresh markets, as well as increase income. Cisco has acquired over one hundred and twenty organizations ranging from small startups to large, well-developed companies including WebEx. As it is noted, it is not easy to merge workers, goods, services, functions, as well as procedures of acquired organizations. With several acquisitions taking place every year, it became apparent that Cisco could not approach the amalgamation effort in an unplanned way, with diverse individual and activities affianced every time. Rather, acquisition incorporation required to become a standard way of carrying out business for Cisco workers. Cisco required an integration approach that would be dependable across the organization, repeatable for every new acquisition, and adjustable as Cisco start to obtain large originations with various functional strictures. Cisco employed the strategy of standardization in order to determine whether or not this unification was a wise choice. Research shows that with Cisco`s standards for the IT substructure and components, it can implement its incorporation strategy much calmer because everybody knows what to do. All it has to do is to work on recognizing and determining the exclusions to the strategy, and that is a vast change for its capability to finish the incorporation rapidly and effortlessly. The strategy of standardization Cisco used in determining if the corporation is the best choice is a good strategy. This is because this strategy enables it to merge the new organizations in every of the organization`s major operational areas such as, information technology. Given the number of organizations that Cisco has acquired, it would have taken too much time to analyze every acquisition, collect Information technology necessities, submit an integration plan for approval to an IT supremacy group, and every time reinvent the several other duties involved in an incorporation. The manager of Cisco declared that they wanted to have a proactive strategy to incorporating acquired organizations, not the reactive strategy that is the usual case. It is through such a strategy that has made Cisco to acquire large organizations including Linksys that are distinct partitions from a legal, functional, as well as governance standpoint. The Cisco IT strategy for supporting those acquisitions is relevantly changed from the entire amalgamation strategy. The corporation that has not been involved in any merger or acquisition and the company that would be a profitable candidate for the corporation to merge with Petrohawk Energy Corporation is an independent energy organization based in Houston, Texas. It takes part in the consideration, improvement, and production of natural gas possessions in the United States. The best profitable candidate for this Petrohawk Energy Corporation is the BHP Billiton Company. BHP Billiton Company declared that it has accomplished its acquisition of Petrohawk energy through a short-form merger under Delaware regulation of its exclusively preserved subsidiary with and into Petrohawk, with Petrohawk being the persisting company as an exclusively maintained minor of BHP Billiton Company. Therefore, BHP Billiton Company is the company that would be a profitable candidate for the acquisition or the merging with Petrohawk Energy Corporation. The corporation that operates internationally and its international business level strategy and international corporate level strategy Royal Dutch Shell Corporation operates internationally in more than one hundred and forty nations worldwide. The organization`s culture bases on technology and trading, although there is also a powerful sense of corporate social responsibility. There is anticipation that worker that the organization is in a sustainable improvement mindset; they view it as a positive event; even though it may differ by nations. Workers anticipate Shell to endorse a great standard on advanced issues concerning how an organization is supposed to act. The corporate level strategy for Royal Dutch Shell incudes the scenario planning as a scheme structure for intellectual through trials and categorizing dangers and chances. This is an international strategy that mumbles a revelation of how universal forces may shape markets over the next coming years. The creation of scenarios offers the corporation with a toolkit to measure risks, makes venture decisions, create a mutual strategic linguistic for leadership groups, and involve in main public policy issues. In addition, Shell uses story outlines because stories are how individuals comprehend the world, and stories permit for numerous levels of indulgent while still providing passionate and intellectual influence. On the other hand, the international business level strategy employed by the Royal Dutch Shell is concentrating on a particular market position or niche. This strategy allows them to integrate economic, environmental and social considerations into the business decisions they make. It underpins the way the corporation develop and function in regard to its projects and facilities, as well as the manner in which they manage their supply chains. It aids them to enhance the goods they and services they provide to clients (DePamphilis, 2010). They share the profits of their functions involving assisting to create local economies through supplier deals and by establishing employment opportunities. Their business strategy concentrates on venturing progressively to provide more energy tot its targeted consumers in particular places. In order for Royal Dutch Shell to improve more, it is highly recommended that it put into consideration the business level strategy of differentiation. This could be accomplished through planning and production of exceptional goods. The features of promotion have been adopted in guaranteeing product differentiation from competitor goods. Even though differentiation has been a source of higher costs to the organization, it has permitted it to differentiate its products and services from those of opponents. It is vital to note that, differentiation will make it possible for the products of Royal Dutch Shell to transpire in an exceptional way, consequently resulting into greater markets. Royal Dutch Shell has been much sensible concerning the augmented expenses resulting from the implementation of differentiation, thus making it to sustain its effectiveness. Therefore, by implementing this strategy, the corporation will for sure make great progress in the future concerning the provision of its energy products and services and in particular on international level. This is because the strategy of differentiation allows an organization to produce unique or exceptional products, which makes it to outshine its rivals at all levels in the marketplace. The corporation that does not function globally Sturm, Ruger &company, Inc is tangled in the organization, production, and trade of weapons to local buyers; the organization has some reportable functioning sections including firearms and venture castings. In the firearm section, products such as rifles and revolvers are produced, while in the casting ventures, steel products are sold. The Corporation's weapons are sold through self-governing wholesale suppliers, mainly to the profitable sporting market. The best corporate level and business level strategy that could be recommended for this corporation includes cost leadership as a business level strategy. The management of the organization drawing guidelines could achieve this and tactics that are directed at guaranteeing the company is the lowermost manufacturer and supplier. Through strategizing on cost efficiency, the triumph and sustainability of the organization will be improved. By decreasing the cost of invention and administration, Sturm, Ruger &company, Inc will be offered golden chances on governing charges of its goods, therefore improving its competitive advantage. Concerning the corporate level strategy, it is recommended that the corporation adopts a governance arrangement which is developed to be a functioning arrangement for honorable activities, operative decision making and proper checking of both submission and enactment. This arrangement is a suitable way to ensure that the top-level administration is always monitored. Accordingly, it is also a suitable way to collect suggestions and ideas on decisions by other individuals within the organization system. The associates on the panel provide awareness into the resolutions without having prejudice because they are not in the same businesses. This strategy enables the corporation to encounter fewer complications at the corporate level. In conclusion, this research paper had the main objective of finding out various issues concerning mergers, acquisition, and international strategies. Whether the markets are active or down, or the contracts are pleasant or intimidating, mergers and acquisitions can be the main component of a corporation`s strategy to develop extra value and make the most of sustainable competitive edge. In the current marketplace, there are a number of factors that are driving great levels of mergers and acquisitions and they include powerful corporate balance sheets, cash wealth organizations seeking to merge their business situations, as well as low interest charges that permit greater advantage. In addition, it noted that Cisco has developed cross-efficient groups, distinct mutual philosophies, as well as developed value procedures. This well-organized method to integration permits Cisco the capability to attain speedily the value anticipated from the acquisition, among other benefits. It considered Cisco IT as an organization has acquired various organizations in its strategy to succeed. Accordingly, the research paper noted some of the organization that are involved in merging and acquisition processes. The research realized that Royal Dutch Shell Corporation operates internationally in more than one hundred and forty nations worldwide. The organization`s culture bases on technology and trading, although there is also a powerful sense of corporate social responsibility. References Buckley, P. (2002). International Mergers and Acquisitions: A Reader. New York,NY: Cengage Learning EMEA. DePamphilis, D. (2010). Mergers and Acquisitions Basics: Negotiation and Deal Structuring. Boston, Wiley. Satu, T. (2012).The Handbook of Mergers and Acquisitions. Oxford: Oxford University Press. Read More