Description
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 six to eight (6-8) page paper in which you:
- 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.
- 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.
- For the corporation that operates internationally, briefly evaluate its international business-level strategy and international corporate-level strategy and make recommendations for improvement.
- 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.
- Use at least three (3) 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.
The specific course learning outcomes associated with this assignment are:
- Identify various levels and types of strategy in a firm.
- Use technology and information resources to research issues in business administration.
- Write clearly and concisely about business administration using proper writing mechanics.
Explanation & Answer
Attached.
Running head: MERGER, ACQUISITION, AND INTERNATIONAL STRATEGIES
Merger, Acquisition, and International Strategies
Institutional Affiliation
Date
1
MERGER, ACQUISITION, AND INTERNATIONAL STRATEGIES
2
Introduction
Mergers and acquisition involve the consolidation of different companies which have
similar entities with the aim of maximizing their operations. Merging involves combining two
different companies into one while acquisitions involve one company taking over another one.
Mergers and acquisitions are common aspects in the corporate world since they help companies
to maximize their wealth. Mergers and acquisitions can occur by purchasing assets and shares or
by exchanging shares for assets or for other shares. AT & T is a Corporation which has been
involved in merging whereby it merged with the T-Mobile in order for the two companies to
compete favorably in the telecommunication industry. AT & T is involved in the provision of
digital entertainment and communication services in the U.S. and also internationally in Mexico
and Latin America (AT&T, 2017). Publix Super Markets Inc. is one of the companies in the U.S.
with no history of acquisitions and mergers. Publix Super Markets and its various subsidiaries
operate solely in the U.S. whereby it is involved in the business of retail food supermarkets
(MANN J.A. 2015). Its retail food supermarkets are found in Florida, Alabama, Georgia, North
Carolina, South Carolina, Tennessee, and Virginia. The two companies would benefit greatly
from the business-level and corporate-level strategies discussed in this paper.
The Strategy Which Led Merging In AT & T
In 2011, AT & T and T- Mobile made a megamerger worth $39 billion which made them
the U.S. largest wireless carrier enabling them to beat Verizon Wireless which was their major
competitor (Long, 2012). Both T-Mobile and AT & T benefited from the merger whereby the
heavy debts of T-Mobile were reduced through the acquisition of valued AT &T stocks. AT & T
was also a beneficially of the merger since it was looking for an opportunity to increase its
MERGER, ACQUISITION, AND INTERNATIONAL STRATEGIES
3
coverage and network and also wanted to expand its evolution technology in the long term. The
merger was also important since two companies became in a position of creating new strategies
for manufacturing a new devices and developing new application to cater for customers in the
wireless industry. Before the merge, the stocks of T-Mobile had been dropping significantly and
thus the best option for the company was to merge with AT&T. T-Mobile was involved in the
provision of services such as voice mail, texting, and offering free minutes to attract customers
(Long T. 2012). The company was slow in upgrading their internet network although its basic
services were still in demand until the arrival of wireless data which st...
Review
Review
