Apple's Latest Acquisition - Annotated Bibliography Example

Table of Contents Article Merging 2 Judge holds up American Airlines merger with US Airways because bankrupt company plans to pay CEO $20MILLIONgolden parachute by Daily Mail dated 28th March, 2013 2 Summary 2 Story 3 Article # 2: Acquisition 5 Apples Latest Acquisition Puts Them inside the Building by Mitch Joel dated 28th March, 2013 in Harvard Business Review 5 Summary 5 Story 6 Article # 3: Diversification 7 Establishment of Sony Olympus Medical Solutions Inc by Reuters dated 16th April, 2013 7 Summary 7 Story 7 List of References 10 Article # 1: Merging Judge holds up American Airlines merger with US Airways because bankrupt company plans to pay CEO $20MILLION golden parachute by Daily Mail dated 28th March, 2013 Summary After constant pressure from the creditor committee, American airline had to merge with US Airways to become the largest carrier in the country. This merger between the AMR and US Airways would provide the organization with significant opportunities to both the companies and in particular, the AMR would be provided with an additional opportunity to enhance its net saving. In addition, the AMR’s shareholders would receive 3.5 percent equity stake in the new organization through which the shareholders would be able to earn some recovery even after the bankruptcy case. In order to advance with the merger, the CEO of the bankrupt American Airline would be paid with $20 million which could be termed as golden parachute for the organization at this moment. Although, the merger between both the organizations was under consideration for quite some time, it has been reported that the merger would be finalized by paying the outgoing CEO with $9.9 million in cash along with $9.9 million in stock as part of the severance package. It has also been indicated that the merger would be finalized and closed in the third quarter (i.e. July-September 2013) (Daily Mail, 2013). Story The filing of bankruptcy in November 2011 was one of the major identified reasons behind such a merger. As indicated by Stephen Karotkin, a lawyer of AMR; the parent company of American Airlines indicated that strategic move taken by the AMR would provide the organization with an opportunity to establish it from scratch by working in collaboration with the US Airways. This merger would help both the organization to create and form the largest carrier in the country. With this merger, AMR would see significant changes in the management. The article indicates that the CEO of American Airlines would not be able to see the new organization. The merger of both the organizations to create the biggest airline of the country would be lead by US Airway’s CEO Doug Parker whereas; Horton would become the chairman of this newly established company. As indicated, Tom Horton would be paid with $9.9 million dollars in cash along with $9.9 million in stocks to step down from his position as the CEO of the company. On the other hand, the shareholders of AMR Corporation are expected to be paid with 3.5 percent equity stake in the new organization. This would make the organization one of such bankrupt organizations in the world in which the share holders are provided with an opportunity to earn enough money to recover. With such merger at hand, both the organizations aim to enhance their profit to significant level along with an opportunity to gain customer’s attention by becoming the largest carrier in the country. With the mixture and collaboration between the senior leadership, the newly created organization would be able to enhance its performance and effectiveness in the industry (Koenig, 2013). Another article related to the merger indicated that Parker’s salary in the year 2012 was estimated $550,000 but due to the performance and increase in stock price, Parker was awarded with stock and option awards valued $2.7 million which was a combination of cash-incentive of $2.2 million and the rest $47,000 in other compensation. In addition, it has also been indicated by Parker himself that the incentive plan was due to 100 percent increase in financial performance making the year 2012 a record-setting year for the US Airways. Moreover, the net income recorded in the year 2012 was estimated to be $637 millions (Huff Post, 2013). Article # 2: Acquisition Apples Latest Acquisition Puts Them inside the Building by Mitch Joel dated 28th March, 2013 in Harvard Business Review Summary The acquisition took place is the mid of March 2013 when Apple acquired Wi-Fi-SLAM for an estimated amount i.e. $20 million. Wi-Fi-SLAM was established only 2 years earlier with limited number of employees which included some ex-Googlers. With the acquisition of this company, Apple is provided with an opportunity to enhance its products’ features. Wi-Fi-SLAM is known for its technology that allows the organization to pinpoint the location of the product using Wi-Fi signals. Due to such extensive use of technology, the company could be regarded as GPS for indoors (Joel, 2013). With more and more competitors are entering the Smartphone market, consumers are constantly looking forward for Smartphones that could provide them with more facilities. In the battle to win customers, this significant move could provide the company with an opportunity to meet the needs of the customers in terms on technology. With the acquisition of Wi-Fi-SLAM, Apple will surely make several dominating moves that could allow the organization to perfect its mapping of the spaces. On the other hand, competitors such as Google and Amazon are also constantly focusing their operations to capitalize the idea of mapping the inside of spaces. Story GPS facilities in smartphones have still too much capability to grow as this feature is still in its infant stage. With the real-time information provided by the Wi-Fi-SLAM, Apple would have competitive edge in the market. Even though, Amazon is constantly working to make its way to the top through diverse information they have about the consumers but with this real-time information, Apple would be able to make its retail stores more dynamic and unique (Hughes, 2013). The strategies that Apple have considered to maximize the value provided to the customers in its retail stores include the mapping of inside spaces rather than just oceans and the arctic. By providing the customers with real-time information within the retail stores, the company aims to change the retail landscape by understanding the consumer’s purchases in aisles. In addition, with this technology at work, Apple would be provided with information regarding the flow of customers in the retail stores along with where they stop and make purchases which is eventually going to affect every practice in the retail store ranging from price to shelf-space (Reed, 2013; Cox, 2013). By focusing highly on the technology provided by the recent acquisition, Apple’s operations in the retail stores would be significantly changed as this technology could prove to be the triumph card for the company to secure the future of its retail business. Article # 3: Diversification Establishment of Sony Olympus Medical Solutions Inc by Reuters dated 16th April, 2013 Summary Sony is one of the most prominent organizations in the world of innovation and creative products. Some of the infamous line of products offered by the company includes electronics, play stations, online games and movies as well as music. With the growing competition in the market, the organization decided to take a bold step that could enhance the profit margin as well as organization’s reputation in the corporate world. Recently, Sony and Olympus Corporation decided to establish a new organization named Sony Olympus Medical Solutions Inc. to provide the customers with high-quality medical products to as many people as possible in the health care industry which would eventually be regarded as a contribution to the medical advancement worldwide (Reuters, 2013; Sony, 2013). Story Sony is one of the most famous organizations in the corporate world due to its knowledge of electronic technologies. Sony’s decision to enter the medical product industry could be regarded as an outstanding diversification. The joint venture decision between Sony and Olympus Corporation is perfectly the strategy that both the companies required to change the face of the industry. This new organization; Sony Olympus Medical Solution, would aim to align Sony’s knowledge and its application in electronic technologies i.e. digital imaging with Olympus’s manufacturing and R&D expertise in areas i.e. medical products to provide the customers with high-quality medical products to diversified people at the same time (Sony Corporation, 2012). With this diversification into the medical industry, Sony and Olympus would have significant opportunities to develop, design and manufacture innovative medical products to ensure the safety of the patients, doctors and the rest of the world. The diversification strategy would significantly impact the organization’s performance and reputation in the market due to which the organization would be provided with several opportunities to expand its business internationally. Sony would directly target the medical industry for it’s mid to long-term growth and to do so, the organization would use all its resources, assets and cutting-edge imaging technology in the new venture in order to bring innovative products in the market. Such innovation in the medical industry would surely enhance Sony’s growth prospects to significant level that the organization could have never imagined or achieved on its own. Sony is currently active in several markets including electronics, video games, songs and music as well as play stations. The joint-venture between both the organizations would surely have great impact on these markets as well. The reputation of Sony by entering in the medical industry would increase to significant levels which will eventually attract the potential as well as other customers in the market to create positive image of the company. This new organization’s objectives are highly in the public’s interest as by entering the field of medical solutions, the organization would provide the customers with products that would ensure safety and wellness of the patients, doctors and the rest of the world. In addition, the integration between the two organization would ensure the creation and manufacturing on innovative products as well as advancement in the field of medical surgery which eventually help the people to take maximum advantage of such synergy. List of References Cox, J. (2013). Apple leverages Wi-Fi location with latest acquisition. Available from http://www.networkworld.com/news/2013/032513-apple-wifislam-268054.html [Accessed 3 May 2013] Daily Mail. (2013). Judge holds up American Airlines merger with US Airways because bankrupt company plans to pay CEO $ 20 Million golden parachute. Available from http://www.dailymail.co.uk/news/article-2300719/Judge-holds-American-Airlines-merger-US-Airways-bankrupt-company-plans-pay-CEO-20MILLION-golden-parachute.html [Accessed 3 May 2013] Huff Post. (2013). US Airways CEO Gets 44 Percent Pay Bump; Merger Makes Him Leader Of Worlds Biggest Airline. Available from http://www.huffingtonpost.com/2013/04/16/us-airways-ceo-salary_n_3090910.html [Accessed 3 May 2013] Hughes, N. (2013). Apples $20M purchase of WiFiSLAM snubs Googles Android for indoor map tech. Available from http://appleinsider.com/articles/13/03/25/apples-20m-purchase-of-wifislam-snubs-googles-android-for-indoor-map-tech [Accessed 3 May 2013] Joel, M. (2013). Apple’s latest acquisition puts them inside the building. Harvard Business Review, Available from http://blogs.hbr.org/cs/2013/03/apples_latest_acquisition_puts.html [Accessed 3 May 2013] Koenig, D. (2013). American Airlines CEO Tom Horton’s severance package will be nearly $ 20 million. Available from http://www.huffingtonpost.com/2013/02/15/american-arlines-ceo-severance-package_n_2695434.html [Accessed 3 May 2013] Reed, B. (2013). Apple buys indoor mapping company in latest bid to improve iOS Maps. Available from http://bgr.com/2013/03/26/apple-wifislam-acquisition-ios-maps-396556/ [Accessed 3 May 2013] Reuters. (2013). Sony Corporation establishment of Sony Olympus Medical Solutions Inc. Available from http://www.reuters.com/article/2013/04/16/sony-corporation-idUSnBw5jVZrTa+11a+BSW20130416 [Accessed 3 May 2013] Sony Corporation. (2012). Corporate strategy meeting. Available from http://www.sony.net/SonyInfo/IR/info/strategy2012/pdf/presenE.pdf [Accessed 3 May 2013]. Sony. (2013). Establishment of Sony Olympus Medical Solutions Inc. Available from http://www.sony.net/SonyInfo/News/Press/201304/13-0416E/index.html [Accessed 3 May 2013] Read More