Merger Acquisition and Business Strategies - Assignment Example

MERGER, ACQUISITION AND BUSINESS STRATEGIES In the modern world, it is vital for the businesses to be achievement- oriented and offer customers more availabilities, products, and services in order to attract them. This means that the companies should search for the new opportunities for their development and growth. Here mergers and acquisition are sometimes the only best way that affects the profitability and financial health of the company and represents a defining moment in the development of the organization. The following paper will illustrate how successful may be the union of two companies. Further, it will represent the business and corporate- level strategies in order to get acquainted more with the ways the companies do to achieve their development. Mergers and acquisitions are essential part of any healthy economy and are they ways in which the companies may provide the returns to owners and investors. However, many mergers fail or face serious issues while getting a new look. This is a risky step toward the development and success of the certain company, that without a well- planned strategy and skills of those who manage it, the whole idea may turn into failure. Recent studies found mergers and acquisitions to be the most efficient when the company merges with the other one of similar targets. Such merger brings success for both companies, because it offers different products and services and greatly varies from its rivals. Exxon-Mobil merger A successful example of the merger can be noticed in the case with Exxon-Mobil merger, the largest merger ever undertaken. The oil industry has been forced to adapt to the solid change forces of globalization, industry transformations, technology and innovations. This was the driving force for the Exxon- Mobil merger. By joining the complementary assets, Exxon-Mobile obtained stronger presence in the areas of the world in which there was the highest potential for oil and gas exploring. The combined companies have also obtained the stronger position in investing in programs that involve huge outlays with future returns. After the Federal Trade Commission approved the merger, media reports considered that the two companies would have the biggest challenge to show how the customer would benefit from the merger. Experts think that the main reasons behind the merger were to improve earnings stability, fall oil prices and increase competitive advantage in technology. The benefits of the merger were in the synergies of near-term operating and improvements of capital productivity. The management also thought that the combined companies could use their capital more gainfully and such improvements would be realized through cost savings, efficiencies of scale and sharing of best management practices between the two companies. The businesses and assets of Exxon and Mobil were interworking in key areas and this brought technology synergies for both companies.  Such proprietary technologies heavy oil, a deep water and arctic operations, gas-to-liquids processing and high-strength steel were focused on refining and acted as the chemical catalysts. Exxon’s base stocks in lube production matched Mobils leadership in lubes marketing. A standardization and integration of hierarchy system that was common to both companies built successive layers and enabled Exxon- Mobil to bring good results and operational excellence. It was concentrated on cost management as well. The Exxon- Mobil strategy in delivering the balance between global IT standards helped to integrate companies and worked put the process-oriented resolutions to meet the internal needs of the functional organizations. The execution of the strategy was a significant undertaking. Before the merger, both companies had implemented standardization strategies for technical computing. The distribution of the technical computing system standard took two years and brought the US one hundred million of reduction in annual costs. Exxon- Mobil’s merge have joined commercial IT products and internal possessive technologies and applications. A well-defined company strategy helps to ensure the optimum balance between the customers and internally developed components. The global functional organization of Exxon- Mobil connects the commitment and the ability of the company to perform the global standards in order to provide a unique framework, to integrate and optimize the standard work processes, tools and technology throughout its whole activity. This allows Exxon- Mobil to achieve competitive advantage through systems integration and standardization. Today the Exxon- Mobil Company is one of the strongest leaders in the oil market with the attention- getting earnings. It has all ten spots in the “Top Ten Corporate Quarterly Earnings” and is the one of the world’s largest publicly held companies. Deckers Outdoor Corporation as a candidate for merging To survive in the world of business, there is a need to find all possible ways to defeat rivals. That is why acquisitions and mergers exist. For the companies that want to expand their products and services in other the markets, acquisition and merging is the best way. It will also bring a new look to the organizational culture and will give new opportunity to create something new. Thus, the company Deckers Outdoor Corporation, which is a footwear designer and distributor, is well- known for the admirers of the brands UGG, Teva, Sanuk and Mozo. The products are sold in more than 50 countries around the world and inside the U.S. Starting with the Flip-flops selling, now the corporation is considered a great niche market supplier due to the dominance of its UGG boots, the most positive clothing manufacturers, which products remain fashionable. The approach the corporation follows is the growth that does not come from copying others, but comes from staying curious and fearlessness for innovation. The company is customer oriented and wills to improve itself by taking into account the family, as its main audience. It wants to provide that family with the exceptional service. The company knows that the consumers are not only interested in their unique product offerings, but they also care about how and under what conditions their products are made. The way Deckers operate their business is as important to the long-term success, which is impossible without new products. Thus by merging with the Sequential Brands Group, the Deckers Outdoor Corporation will enter the new step in their development. It will give the company possibility to open a world of sports and entertainment. The Sequential Brands Group has the DVS shoes as their subsidiary. This footwear and clothing company specializes in products for skateboarding, moto, and snowboarding. A passion for skate developed truly technological products and brought the riders bigger opportunities. The Sequential Brands Group is focused on licensing their brands to leading retailers and manufacturers across the world, through their experienced experts who bring their skills and knowledge to the branding, marketing, development of products and licensing industries. Merging with the Sequential Brands Group will give the Deckers Outdoor Corporation ability to satisfy a wider range of customers. It will allow the company to stay ahead in developing new styles, technologies, products and product categories to fit consumers’ ever-changing lives.  Apple business and corporate-level strategy Almost all companies were created and developed using the certain business strategies. However, the corporate-level strategy in addition to the ones that helped them develop products is also important. An American multinational corporation Apple designs, develops, and sells customer electronics, computer software, online services and personal computers. It is known for such products as a Mac line of products, the iPhone smartphone, an iPod media player and the iPad tablet. The way the company conducts its international business-level strategy makes it the best seller all around the world. Constant desire to improve oneself, the company keeps focuses on the innovation of something new. This is the new version of iPhone and iPad, the exclusive and unique products, which attract more and more consumers. Like any other company, Apple has its major competitors in the same industry, but the company produced unique things and they always led in the market. At the beginning of its history, Apple was very cautious about the mobile and tablet releases. It ensured them long development cycles that bore insight and showed innovations. Their main strategy was to develop and sell completely new products, which would be a mix of art and modern technology and which would provide a simple and modernized user experience. The business strategy helped Apple to raise their popularity and made Apple the one it is today. The company could obtain even more, if continued to innovate. A loyal customer thought has already formed around their brand and mobile products. This allowed Apple to obtain people’s insight for the new products, because costumers were expecting some innovations every time a new product was announced. Besides, it offered cheaper alternatives to consumers. Since the company target market was and is the people who adore having their products, because they are able to experience a great adventure with the latest technology, Apple was able to attract and keep many consumers by bundling their other product offerings. These were the iTunes, along with the use of iPhone and iPad. Apple Inc, international corporate-level strategy was based on the focusing of their product selling on first world country. The manufacturer of their products were focused in the third world countries because the labor force was cheaper and it was more convenient to the company. The company made its products based on consumers’ needs and demands. Their, the company’s, major target was to serve the technology market with its latest technology and to sell the latest device that would attract every customer. The business strategy course keeps the company’s its modern image with the devices and computer so to attract new and retain current customers. There is a possibility to sell their products in the different ways, online or at the store in different locations across the United States and in Europe and Asia. Such availability is the additional advantage for the company, because there were the few companies that have retail stores. In order to improve Apple’s international business-level strategy, the company may use free application for the consumers. It may offer an application that will give different options to the product, for example to keep the calendar, emails or contacts over the air. Indeed, such availability has already appeared and cost $99 per year for each user. Nevertheless, if the company enables free application, it will give create new advantages for the company, because there will be rivals in this sphere. CiCis Pizza business and corporate-level strategy Companies develop a business-level strategy to provide the organization with enough employees to contribute the output of products or services. At the business- level strategy ensures the respect of human labor rights which is necessary for the business operations. For CiCis Pizza, which is the American buffet restaurant chain based in Texas and specializing in pizza, people are the core element in their activities. The strategy of utilizing the human resources and treating them properly is used to provide the best quality of products and services the company performs. A family oriented concept across all restaurants of CiCis Pizza ensures the most sincere and trustful treatment of all the customers of the organization. The company tries to offer more products to more customers in order to be a leader of their goods at a certain area. This will ensure the value creating strategy to work for the benefit of the company and will bring services that are more qualified to the people. Whether the company is big or small, it main goal is to serve people, to bring the best services or goods and products to them. In time of continuous development of everything and everyone, there is a great need to be able to defeat the rivals. This may be achieved by constant improvement, which is sometimes impossible without a help of other bigger company. Merger and acquisition is always about the development. However, only with the well- developed plan of actions, it will be possible to meet all the challenges and go through all the trips. References Apple Business Strategy under Steve Jobs, n.d. Available from http://faculty.ist.psu.edu/bagby/432F12/T11/apple-business-strategy-under-steve-jobs.html Deckers Outdoor Corporation, the official web site, Available from http://www.deckers.com/company/our-approach Sequental Brand s Group, The official web site, Availale from http://sequentialbrandsgroup.com/ Sherman, A. (1998). Mergers and acquisitions from A to Z strategic and practical guidance for small- and middle-market buyers and sellers. New York: AMACOM. Weston, F., (2002). The Exxon-Mobil Merger: An Archetype, Forthcoming Journal of Applied Finance, Financial Management Association Read More