Motives of and challenges for the corporate expansion and emergence - Essay Example

For example, Starbucks is one of the big business tycoons in America which have thousands of outlets across the country. They have coffee shops in each and every corner of America and the competition from the competitors is increasing day by day. It is difficult for them to expand their business in America because of the saturation they have already attained and internationalization of the business seems to be the only option left for them. On the other hand the intrusion of the corporate companies has made the things worst for the small scale and medium scale business groups.

Big business tycoons with their immense financial capabilities and innovative business strategies have conquered the markets of the small and medium business groups. It is difficult for the small and medium business entities to fight or compete with the multinational corporate companies and acquiring strength through mergers or acquisition is the only way ahead of them to stay in the market. welcoming Foreign Direct Investment (FDI) to their country by liberalizing the rules for the foreign Corporate Company’s entry into their country.

Moreover the cultural adaptation of the business in a foreign country seems to be difficult one for the international companies. Thus expansion and emergence is a difficult task both in domestic circuit and international circuit. This paper briefly explains the expansion and emergence of companies through mergers and acquisition and strategies and challenges for merger and acquisition process. Mergers and Acquisition is a common phenomenon in international business circuit at present because of the steep global economic recess.

Even survival seems to be difficult irrespective of big or small companies. Financial institutions like Lehman Brothers and automobile manufacturers like GM have suffered severe setbacks and they have no other way, but to think in