Mergers, Acquisition, and International Strategies - Microsoft Corporation - Assignment Example

? Mergers, Acquisition, and International Strategies A public corporation being acquired by another company, acquiring another company, or merging with another company; an evaluation of the strategies that led to the merger or acquisition, and whether it was a wise choice Microsoft Corporation, a corporation based in Washington, which engages in the manufacture, development and licensing of computer products, was identified as an ideal public corporation. Microsoft has acquired other companies, including Skype in the year 2011 among others. Microsoft is reported to have made acquisitions that are estimated to be worth billions of dollars, and this raises the need for evaluation of strategies that led to the acquisition (Frankel, 2007). Through strategic positioning of the products and services of Skype, Microsoft strategically noticed the level of usage of Skype, through the voice and video calling application in addition to other features. Strategically, the acquisition connected the business of Microsoft Corporation and blended well with other services and products of this corporation. This also facilitated the strategic evaluation of the priorities of its products, as well as the development of business strategies of the corporation (Gaughan, 2010). The fact that Skype was a computer to computer based telephone program, made it even more ideal for Microsoft Corporation. Once it was acquired, the corporation was able to provide voice services to its wide range of clients across the globe, and this placed the corporation strategically for providing a wide range of services. This was not only a strategic decision for marketing the products of the corporation, but also a wise move that has seen the corporation increase its market share (Frankel, 2007). The justification for the opinion is that Microsoft is able to generate revenue through Skype, both locally and internationally through the services of the acquisition. This is facilitated by the fact that the services are computer based, and thus cheaper than the rates of other companies (Ulijn, 2010). Identification of a probable candidate corporation that has not been involved in mergers or acquisitions, and explanations why this company would be a profitable target Although mergers and acquisitions are applied by corporations strategically to finance and effectively manage the dealings of the corporation, through effective combination of various companies as well as similar entities that have a common enterprise for effective and rapid growth, there are corporations that have purely ignored this corporate strategy. Most corporations purchase companies and business entities for the purpose of combining their enterprise strategies (Gaughan, 2010). An evaluation of the business-level strategy and one corporate-level strategy of a corporation that operates internationally, which is recommended for improvement The practice has clearly demonstrated that corporations that operate at the international level are subjected to more barriers and risks, due to the dynamic changes associated with the various regions across the globe. For the purpose of effective management of these risks, there is need for such corporations to evaluate the business-level strategies for the purpose of realizing the true value of conducting business at the international level (Frankel, 2007). A business-level strategy is fundamental for increasing the business value of any corporation. It is a very critical point for the corporation to identify and apply and appropriate business-level strategy. The practice of mergers and acquisitions has been applied by most corporations for the purpose of realizing the business-level strategies that are ideal for their cases. It is a very common trend which has seen most international corporations change their image in order for them to meet the demands and values of the consumer base. Apple has ideally identified such features through its technologically marketing strategies. The corporation has adopted modern quality appeals to the international market, and this has assisted the corporation in the sustaining of the high market image. This is a marketing strategy that is affected by creating a sense of identity with the market (Gaughan, 2010). The international corporation has managed to create an international industry niche by specializing in specific products. This is illustrated by the case of Microsoft, which deals with software development and other computer based applications, and thus creating a niche with the computer world. This is affected through mergers and acquisitions of potential competitors and opponents. It is an effective strategy, in ensuring that the corporation’s revenue flows through exploiting certain needs within the international industry. This is a technological capacity that most competitions will not have, and thus affords the corporation a higher niche. The corporation also manages operational costs by marketing their products and services globally (Frankel, 2007). The corporate-level strategy assists a corporation in its strategic objectives, and it facilitates the corporation’s ability in matching the environment and the capabilities of the resources, values as well as the expectations of its stakeholders. It is fundamental in deciding on the strategic production and marketing strategies of the corporation, and particularly funding and human resources among other key features that are influential in strategic planning (Ulijn, 2010). The corporate strategy should be concerned with the business of the corporation, including its mergers and acquisitions. The strategies of the individual units are effectively coordinated and integrated to form the corporate strategy of the corporation. All the strategies should be diversified to ensure that they meet the specific needs of the geographical markets as well as the specific products (Gaughan, 2010). The combination of the corporate strategy and the business strategy is recommended because it supports the corporation’s strategies. The corporate strategy assists in the different functions of the corporation (Frankel, 2007; Layne, 2007). Proposal of one business-level strategy and corporate-level strategy that is suitable for the corporation, and that does not operate internationally, and the justification The main goals and objectives of the corporate level strategy are to provide a long term direction, as well as ensuring that there is a survival policy for the corporation. In the case of Microsoft Corporation, Business-level strategy and Corporate-level strategy have assisted in the alignment of the strategies of the corporation, as well as those of its acquisitions which serve as the operating units. The corporation has managed to address the complex problems effectively, through cross business dynamism. The corporation develops long term strategies and values for each and every operating unit as well as the corporation (Frankel, 2007). It is therefore important for every organization, to evaluate the benefits of mergers and acquisitions. The significance of the public corporation cannot be ignored, owing to the benefits attributed to the management role that the corporation plays, in the realization of the corporate purpose. It is also noteworthy that mergers and acquisitions are significant in the success of any business empire. The Texton Incorporation is considered as a conglomerate corporation. Thus, merges are instrumental if effectively managed. The management of any business portfolio is fundamental for its survival, growth and success through diversification of various product lines (Ulijn, 2010). References Frankel, M. (2007). Mergers and Acquisitions Deal-Makers: Building a Winning Team. New York, NY: John Wiley & Sons Publication. Gaughan, P. (2010). Mergers, Acquisitions and Corporate Restructurings. New York, NY: John Wiley & Sons Publications. Layne, S. L. (2007). Mergers. New Orleans: Pelican Publishing. Ulijn, J. (2010). Strategic Alliances, Mergers and Acquisitions: The Influence of Culture on Successful Corporation. Washington, DC: Edward Elgar Publishing. Read More