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merges and acquisition assignment 2

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QUESTION
Assignment 2: Mergers and Acquisitions
Use the Internet to research a publicly traded company in the United States that has undergone a
merger or acquisition within the last three (3) years. Take note of the circumstances surrounding
the merger or acquisition.
Write a four to six (4-6) page paper in which you:
1. Examine the circumstances that resulted in the merger or acquisition for the selected company.
Speculate on two (2) reasons why the resulting decision to merge or to acquire / be acquired was
made.
2. Assess the significant positive (or negative) effects of the merger or acquisition. Provide at
least two (2) examples of those effects now that the merger or acquisition has been completed.
3. Examine the organizational structure that has resulted from the merger or acquisition. Analyze
the major differences between the resulting company and the original two (2) organizations.
4. Determine whether or not the human resources management practices of the company were
modified to reflect the outcome of the merger or acquisition. If no changes were necessary,
speculate on the reasons why they were not. Provide a rationale for your response.

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PAPER
Merger and Acquisitions
Introduction
Acquisitions and mergers have increased in the United States and they provide businesses
with a growth and expansion strategy .merging is the process of combining two businesses to
create a common ownership of the businesses. This helps the resulting enterprise to achieve a
bigger market share and acquire more resources to carry out its operations. Acquisition is the
process in which the acquiring firm purchases the stock or shares of the other company to finally
become the owner or majority shareholder. This is also referred to as a take over in the business
world. Merger and acquisition have proved to have some advantages and disadvantages
depending on the management’s strategies and decision making strategies there this should be
considered before going through this path. (Gattiker, 2007).
Pfizer and Warner-Lambert
Mergers and acquisitions have assisted many organizations in expending and increasing
growth and this has helped researchers and academicians to study the importance of this
phenomena. The merger of Pfizer and Warner-Lambert is one of the greatest mergers in the
history of United States. The two companies are known for the quality and effectiveness of their
drug products and the merger helped them to acquire more market share and increase their
business success in the pharmaceutical industry. Pfizer and Warner-Lambert were the fastest
growing companies in the past. According to the history of Warner-Lambert, it had gained
success in a very small period of time. The company was established in the year 1800s and

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continuously achieved high position in the industry since then due to effective managerial
strategies and decision making methods .this helped the country to acquire Schick and American
Chide Company and it is from that merger that Warner-Lambert started expanding and gaining
increased profits. In the 1900s Pfizer filed a complaint against the drugs produced by Warner-
Lambert and this caused a great effect on the company’s reputation since they could not prove to
their shareholders on how they deal with AHP.
In 2000, Pfizer took over the Warner-Lambert through a hostile takeover due to the strong
position it had in the industry market. This was achievable due to the strategic decision making
processes adopted by the management of the organization. This deal for the takeover was worth a
clean $90 billion of stock and it has helped the resulting company to dominate the industry.
(Gattiker, 2007).
Reasons of Merger
One of the main reasons that companies undergo mergers is to increase their expansionary
path and increase growth as a result. Pfizer and Warner-Lambert were two big names of the
pharmaceutical industry (Reed, Lajoux & Nesvold, 2007). The two companies are involved in
production of effective drugs that are used for human diseases and illnesses treatment. The two
companies had big market shares and that is why Pfizer announced a hostile takeover to
consolidate the market and since the Warner –Lambert company did prove to be week in proving
their case about AHP they had to be treated as weak and hence the success of the takeover. Due
to the protection or deterioration of the company’s reputation a hostile takeover was possible and
Pfizer acquired the rights of Warner –Lambert Company in the industry.

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QUESTIONAssignment 2: Mergers and AcquisitionsUse the Internet to research a publicly traded company in the United States that has undergone a merger or acquisition within the last three (3) years. Take note of the circumstances surrounding the merger or acquisition.Write a four to six (4-6) page paper in which you:1. Examine the circumstances that resulted in the merger or acquisition for the selected company. Speculate on two (2) reasons why the resulting decision to merge or to acquire / be acquired was made.2. Assess the significant positive (or negative) effects of the merger or acquisition. Provide at least two (2) examples of those effects now that the merger or acquisition has been completed.3. Examine the organizational structure that has resulted from the merger or acquisition. Analyze the major differences between the resulting company and the original two (2) organizations.4. Determine whether or not the human resources management practices of the company were modified to reflect the outcome of the merger or acquisition. If no changes were necessary, speculate on the reasons why they were not. Provide a rationale for your response.PAPERMerger and AcquisitionsIntroductionAcquisitions and mergers have increased in the United States and they provide businesses with a growth and expansion strategy .merging is the process of combining two businesses to create a common ownership of the businesses. This helps the resulting ente ...
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