Mergers and acquisitions - Essay Example

Download file to see previous pages Concerning this particular aspect, this paper presents a case study analysis of three recent mergers at a cross-border level, i.e. Johnson & Johnsons acquisition of Synthes GmbH, Microsoft Corporations acquisition of Skype Technologies, China National Offshore Oil Corporation (CNOOC)s acquisition of Nexen Inc. The study signifies that culture, business industry trends and also governmental policies among other attributes play a vital role as a cause of M&As performed by these companies.
M&As are often considered as an important strategic function in the modern day business context where recent studies have revealed that companies principally tend to use the strategy of M&A with the intention of enhancing their performances in terms of profitability, greater market share attainment, better resources allocation, risk diversification as well as business expansion. Various factors have been identified in this context to be influencing the performances of companies and therefore, motivating organisational leaders towards the adoption of M&A strategies such as economic and political trade policies enactments as well as social functions. Moreover, globalisation as well as advancement of technology has influenced companies to adopt this strategy in order to perform effectively in the increasingly competitive global market (Coeurdacier & et. al., 2009). In this regard, companies have adopted M&A strategies with the objective of improving competitiveness as well as growth of its market share. It is in this context that M&A strategies assist companies in restructuring its business operations in order to improve its business performances in the global realm (Directors & Boards, 2006).
Additionally, it has been observed that the strategy of M&As assist companies in acquiring larger market share, better resources accessibility and an enhanced competitive position within a short term period, thus minimising many hazards which are commonly witnessed by modern day ...Download file to see next pagesRead More