Assignment 4: Merger, Acquisition, and International Strategies

Assignment 4: Merger, Acquisition, and International Strategies

Choose two (2) public corporations in an industry with which you are familiar – one (1) that has acquired another company and operates internationally and one (1) that does not have a history of mergers and acquisitions and operates solely within the U.S. Research each company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.

Write a sixt (6) pages paper in which you:

1. For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
2. For the corporation that has not been involved in any mergers or acquisitions, identify one (1) company that would be a profitable candidate for the corporation to acquire or merge with and explain why this company would be a profitable target.
3. For the corporation that operates internationally, briefly evaluate its international business-level strategy and international corporate-level strategy and make recommendations for improvement.
4. For the corporation that does not operate internationally, propose one business-level strategy and one corporate-level strategy that you would suggest the corporation consider. Justify your proposals.
5. Use at least five (5) quality references. Note: Wikipedia and other Websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

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Introduction

            Most companies including multinational corporations could not have been that well established without mergers and acquisition. The principle behind buying off a company lies behind the equation of one plus one is equal to three, meaning that when two companies join together, the value of the shareholding of the companies becomes far much more than the shareholding of the two companies added together. It implies that two companies joined together have greater value than when they operate separately. This rationale is more common when the there are tough economic challenges in the market. The well established companies will tend to buy other smaller companies in order to be gain a more competitive advantage over the rivals and also for cost efficiency. When a company buys another existing company, this is referred to as acquisition while mergers refers to the agreement of two companies of the same size to join and start operating as one company. This has…..

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