Premium Essay

M&a Case Study

In:

Submitted By verduca
Words 7876
Pages 32
Introduction

Currently, Mergers and Acquisition strategy has been significant growth in term of amount and size of organization (Hitt, Harrison, and Ireland, 2001). Since 1980s, the total value of M&A is approximately 1.3 million million dollar and has a huge of increasing amount more than 11 million million dollar in 1990s.

The important reason most of companies do merger and acquisition is to empower in market, more opportunities to access not enough/less own resource of company, more powerful in negotiate with supplier and customer, expand distribution channel, also reducing cost of production risk or new service that company has not enough capability to generate. Moreover, Mergers and Acquisition could limit ability of competitor and hurdle competitor to do business as well as reducing cost of operation because Mergers and acquisition make company expansion. As a result, it could possible to advantage in scale and scope (B.Elango 2006). For acquired companys, they would gain the advantage in term of financial condition because they usually gain capital meaning stronger in company financial.

However, there are some considering factors about the problem of internal management after acquiring or merging such as organizational culture, the risk or failure with wrong set objective. These might be effected to operate business in the future. Mergers and Acquisition could be influenced in different groups both company and acquirer. Thus, it is necessary to consider the objection and business strategy and business plan of Mergers and Acquisition

Scope of study

• To understand how to do business and expand organization by considering method and types of M&A.

• To understand the benefit of Mergers and Acquisition and example of successful business in Thailand.

• To understand what is the process of conducing a

Similar Documents

Free Essay

M&M Case Study

...M&M’s Brand Case Study Update Prepared By: Alana Allred, Nate Matthewson, Arianna Mevs, April Seeley & Krystal Simpson 2008: History of the Organization Mars Snackfood U.S. proclaims Green the new color of love this Valentine’s Day. M&M’s used myths, rumors, and innuendo surrounding Green M&M’s Chocolate Candies. Ms. Green used her alluring ways to promote M&M’s Chocolate Candies as green interrupted the pink and red of traditional Valentine’s Day colors. After Valentine’s Day at the end of February 2008, M&M’s Brand introduced M&M’s Wildly Cherry Chocolate Candies marking the first time the brand used cherry fruit flavoring. M&M’s also released limited edition M&M’s Mint Crisp Chocolate Candies, in conjunction with the new movie Indiana Jones and the Kingdom of the Crystal Skull. 2008 also brought the announcement of personalized M&M’s Chocolate Candies. Consumers can now visit mymms.com and upload photos to be combined with custom messages creating personalized candies for birthdays, weddings and more. M&M’s Brand released Limited Edition Strawberried Peanut Butter Chocolate Candies to celebrate the release of Transformers: Revenge of the Fallen. M&M’s Brand releases Pretzel M&M’s. 2010: Orange Candy Spokesman becomes the new official M&M’s Pretzel Chocolate Candies Spokesman, featured in advertisements and on packaging with an x-ray image showing its pretzel center. 2009:  2012: Ms. Brown makes her debut during the Superbowl. Original Milk Chocolate...

Words: 5299 - Pages: 22

Premium Essay

H&M Case Study

...H&M Case Study Since 2000 Swedish retailer’s H&M growth rate is high. Its motto is to offer fashion and quality at the best price. Nowadays H&M’s growth target is to increase the number of stores by 10 – 15 percent per year, while increasing sales in comparable units. The growth will proceed with an emphasis on and continued high profitability. While entering the U.S. market in 2000, they face several problems. The primary problem of H&M is that it tries to expand around the world too fast without spending enough time to research and analyze the market it enters. In the United States they have chosen incorrect marketing mix strategy; consequently the company has low sales and low profits. Their lack of marketing mix strategy results in the following secondary problems: H&M has not taken into account the competition of inexpensive chains such as Express, Old Navy and Wet Seal. The U.S. customers are not aware of the higher quality of H&M products. So Swedish retailer is not able to compete with U.S. rivals effectively. Another problem H&M encounters in the U.S. market is its inefficient distribution network. Company has chosen too big outlets at poor locations in the suburbs, where they have a lot of direct competitors and few customers, who look for fashion and quality products. The company has suppliers in Europe and Asia, but not in America. It probably increases the turnaround period because of the long distance between suppliers and retailers...

Words: 619 - Pages: 3

Free Essay

H&M Case Study

...Introduc.on   •  Introduce  H&M  and  explain  what  type  of  business  it  is   o         In  which  market  does  it  operate?   o  Describe  who  their    typical  customers  are     •  History:   o  Name  the  founder   o  When  did  the  business  begin  (year),  and  where?   •  In  which  countries/con@nents  do  H&M  operate?     •  What  is  the  annual  turnover  for  H&M?     •  Using  Porter’s  ideas,  explain  which  generic  strategy  H&M  is  following  –  explain   your  ideas  using  suppor@ng  evidence     Faculty  of  Higher  Educa@on                                                   City  College  Plymouth  in  conjunc@on  with   the  University  of  Plymouth   10  marks           2   Assignment  1   •  What  are  corporate  values?    Give  a  defini@on  then  cite  those   for  H&M     •  Describe  some  theore@cal  concepts  about  organisa.onal   culture     •  Analyse  the  case  study  to  determine  the  culture  you  believe   prevails  in  H&M.    Give  specific  examples...

Words: 684 - Pages: 3

Premium Essay

M&L Case Study

...M&L Manufacturing. Q1. What are some of the potential benefits of a more formalized approach to forecasting? The potential benefits for M&L manufacturing are: * Proper production planning in future of two of its most valuable and profitable product lines; * Fewer stock-outs in retail stores; * Less uncertainty with regard to unexpected orders and production failures; * Proper inventory management and control over the stock levels; * Better knowledge regarding which products to continue selling and discontinue selling. Q2. Prepare a weekly forecast for the next four weeks of each product. Briefly explain why you chose the methods you used. Product 1 The demand for product one has risen over the period of 14 weeks which depicts that demand can be expected to rise further in the coming four weeks. The pattern can be illustrated using a line graph, as shown in figure 1, below. Based on the shape of the graph, it can be stated that, except for the unusual order of 90 units in the seventh week, the demand has risen over the period in a rising trend. Because of the size of the order the graph gets put off from an otherwise linear pattern of the rising demand. In order to forecast demand of Product, the following features of the demand of the product need to be noted: * The demand has risen steadily over the period of 14 weeks; * The slight deviation in between has been caused by an unusual order which is not expected in future sales. The forecasting...

Words: 873 - Pages: 4

Premium Essay

H&M Case Study

...Case study on H&M Introduction In recent years, H&M has marked the retail clothing industry by the phenomenal pace at which it has expanded the number of its stores across a diverse range of countries and markets spanning Europe, the United States and recently Asia. H&M distinguishes itself from its competitors notably by offering clothes that are trendy, fashionable yet accessible in terms of price. So how does H&M manage to combine these seemingly divergent characteristics, especially in such a fast-moving and fiercely competitive industry as the retail clothing business?  In the following report, I attempt to cast some light on some of the approaches that account for the success and reputation of the company and that have enabled it to remain competitive over the years and across markets in which it operates. I also seek to raise some of the drawbacks related to those approaches in terms of risk for the business. Practice of Market Orientation The practice of market driven marketing rests upon the core idea of generating and offering value to a particular target market better than competitors, which in turn will enable the company to grow and be successful.[1] Generally a market oriented strategy involves focusing on the buyer’s needs and determining the best means by which the consumer will be satisfied. As we will see in the next section, a market oriented strategy begins with identifying a particular target group within a segment and then focusing efforts in understanding...

Words: 3484 - Pages: 14

Free Essay

H&M Case Study

...------------------------------------------------- Case Study on H&M Module 1, Business Organization and EnvironmentHuman, physical and financial resources to create goods and servicesH&M is a popular clothing store and it is usually cheaper than other brands. H&M carry out its goods and services through human, physical and financial resources. The resources are designer, stylist, Media (models), stakeholders, distributing channels (stores or online) and share holders. Human resources like designer, stylist, models and shopkeepers are promoted through media to attract customer to increase demands. Most importantly the clothing is up to date with the most recent fashion trend. It sets up a positive image that H&M’s clothing are fashionable and at the same time customers does not need to spend a huge amount of money to be fashionable. Promotion through media also helps gain popularity for their goods and services.H&M Physical Resources plays an important role to create goods and services. The distribution channels are the only possible direct access for customers to consume their goods and services. H&M has distribution channels world wide even on online stores. This various types of distribution channels not only increase its popularity but become similar to a convenient store where customers can easily access to H&M’s goods and services. The Financial resources come from the shareholders, customers and other stakeholders. These people are the business’s...

Words: 4122 - Pages: 17

Free Essay

M&M's Case Study

...Summary The main purpose of this report is to identify the key business challenges for M&M’s, the confectionary brand of Mars Inc., and develop management solutions and specific recommendations on how effective leadership can meet these challenges in the company. The report proposes organisational change for the firm, which is fully driven by leadership and management strategies. It is identified that the key challenges for M&M’s are weak technological base, insufficient innovation in the sphere of product and package design, dependence on suppliers, conflict of interests in the management team, flat organisational structure, trade barriers, increased competition and insufficient CSR efforts. It is recommended that the organisational change should include the change of leadership style to more inspirational and transformational, achievement of more hierarchical organisational structure and implementation of the diversification marketing strategy. It is concluded that M&M’s should also cultivate innovativeness and creativity among its employees. Table of Contents 1. Introduction and Background 5 2. Environment Monitoring 6 3. External and Internal Analysis 7 4. Complexity of Environment 17 5. Business Challenges and Rationale for Leadership 17 6. Leadership and Improvement Options 19 7. Conclusion and Recommendation 25 References 27 List of Figures Figure 1: Cultural Web 12 Figure 2: Stakeholder Analysis 16 Figure 3: Hofstede’s Cultural Dimensions...

Words: 7804 - Pages: 32

Premium Essay

M & S Case Study

...A brief about the organization: TI Automotive Incorporated in England, TI Automotive is the only global supplier of fully integrated  fuel storage and delivery systems for cars and trucks and the leading supplier of fluid carrying systems for braking and powertrain applications to automakers worldwide. TI automotive employs over 18,000 people, has more than 100 facilities, operating in 27 countries spread over 6 continents. Bundy India Ltd. is a fully owned subsidiary of TI Automotive. Earlier known as Bundy Tubing of India the company in India is popularly known as Bundy. It is well known for its precision tube manufacturing and was the market leader for Fluid Carrying Systems for Automotive and Refrigerator / Air Conditioner. Bundy India Ltd produces high pressure double wall tubes for brake application in automotive industry as well as it produces low pressure single wall tube for fuel application in automotive and gas flow application in refrigeration and air-conditioning. The company set up its first plant at Baroda in collaboration with Murgapa Group of companies in the year 1972. Initially, Bundy started the production of double wall tube for all application and had monopoly in the market. It enjoyed this for many years till 1992. With the industrial market getting more & more competitive, the OEMs (Refrigeration/ Air conditioner) started buying single wall tube from other vendors at lower rates. The company soon started losing money year on year and went into red...

Words: 4093 - Pages: 17

Premium Essay

M&S Case Study

...Quality for Money, Fashionable. Parents used to shop there - historical. Value proposition: Traditional department store. Value achieved by technologists, selectrs to design y dedicatd suppliers. all sold under same brand. network of well located stores. powerfull functional group - food clothes. fabric with japanese houses to try o work towards easy care fabrics with customers in mind. Fashion drove mns in 90s. industry influences customer choice. Rsetless - ho can we improve, how can we move forward, what can we do better, how can we innovate. Brand recognition. M&S 1. Value proposition and how was it provided? 2. What went wrong? Not tackling fundamental issues which were building up. Didnt lose many customers but lost touch with them. Over stock problem which led to heavy discounting, and didnt learn lesson as same thing happened again. Firm was pretending that everything was ok and short term issue for too long which later came as a suprise when dividends were cut. Competitors moved off shore, cheaper products of same quality and later even better quality. MNS had to take detail out of their product. Had to get Buying right as otherwise company couldnt recover. Suppliers tried to help as they were moving offshore but MNS didnt react fast enough. Didndt have fantastic product anymore. Ignored innovation in food. Lost direct command over the supply chain. 3. What is your assessment of Luc's approach? Took advantage of people feeling...

Words: 2613 - Pages: 11

Free Essay

Case Study M-Commerce

...gaUniversidade Lusofona de Humanidades e Tecnologias Caso de estudo m-Commerce Tiago Banha 20085961 LEI 28-10-2011 Universidade Lusofona de Humanidades e Tecnologias O que é a regra '8-segundos' da Internet e porque é tão importante para a tecnologiado m-commerce? R: A regra dos “8 segundos” diz respeito ao tempo da comunicação da acção, isto é, o tempo que a acção do utilizador leva a ser recebida. Claro que é uma regra bastante importante, pois é na base da rapidez que o cliente toma preferençia pela tecnologia m-Commerce. Porque poderá ser útil que os fornecedores de m-commerce ter registos históricos das compras dos seus utilizadores? R: Ter registos de compras dos utilizadores pode ser util e importante para o melhoramento dos serviços e ofertas, pois esses registos ajudarão a ter um maior conhecimento da ultilização dos clientes, ajustando assim os seus serviços as necessidades dos clientes. Qual é a maior preocupação que a maioria dos utilizadores de telemóveis têm acerca da utilização dos serviços de m-commerce? Que outras preocupações têm? R: A maior preocupação dos utilizadores de telemoveis que utilizam serviços mCommerce é a segurança, tais como tambem a fiabilidade e velocidade. São estes os maiores ‘medos’ dos utilazadores destes serviços. Porque motivo são os avanços tecnológicos como os “pseudo-wires” e tecnologia MPLS importantes para aumentar a capacidade de “backhaul”? Tenta pesquisar estas tecnologias utilizando outras fontes para...

Words: 447 - Pages: 2

Free Essay

A Case Study on H&M & Zara

...Extreme Business-Models in the Clothing Industry - A Case Study of H&M and ZARA Kristianstad University The Department of Business Studies FE6130 Bachelor Dissertation International Business Program December 2007 Tutors: Håkan Phil Timurs Umans Authours: Susanne Göransson Angelica Jönsson Michaela Persson Abstract In the clothing industry firms compete successfully by applying different businessmodels. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses on outsourcing and ZARA’s business-model mainly focuses on in-house production. The problem is that the existing theories alone cannot explain why two firms competing in the same environment under the same conditions choose different business-models. The purpose of this dissertation is to further expand the idea of why the two clothing firms H&M and ZARA chose different business-models. Our set of Complementarities for H&M and ZARA are based on the information derived from studying theories, the EU clothing industry and the two firms. Finally, Complementarities were analysed by conducting interviews. Our Complementarities partly explain why H&M and ZARA chose different business-models. However, our analysis is applicable for H&M and ZARA since the Complementarities are based on characteristics found in these two firms. The value of Complementarities can be used by other firms if they find their specific characteristics. Keywords: business-models, internalization, governance...

Words: 24185 - Pages: 97

Premium Essay

M&a - Lion Nathan Case Study

...Prepare a brief chronology of the key events that occurred during this takeover offer. Sep 1, 2005 Lion Made offical offer to take offer cooper offering $260/share for cooper shares Sept 1, 2005 Cooper board of director going to meet and discuss this offer, no action should be taken at this time. Sept 06, 2005 Board of Director of Cooper recommend shareholder should reject the offer Takeover panel review Sept 1, 2005 appeal by Cooper about Lion offer that does not explain the preemptive right. Panel ask Lion to make a join letter to explain the preemptive right Sept 09, 2005 appeal by Lion appealing that Cooper explanation of fair value in the statement of Cooper articles is misleading Sept 21, 2005 Coopers convened an EGM for shareholders by sending notice of meeting and explanatory memorandum to vote out Lion Nathan pre-emptive right from Cooper constitution. Sept 27, 2005 Lion Nathan commenced proceeding in Federal court against cooper, explaining that the explanatory memorandum is misleading October 11, 2005 Injunction was given against Cooper from holding EGM until bidder statement is out to give enough information to shareholder October 10, 2005 Lion Nathan bidder statement comes out. Offering $260 per share of Cooper under several conditions October 19, 2005 Full court of the Supreme Court in Adelaide reject Lion Nathan appeal on Sept 2 decision by Justice Perry. Cooper can hold an EGM to vote out Lion Nathan from its pre-emptive...

Words: 2500 - Pages: 10

Premium Essay

Carl M. Miles Case Study

...In the Carl M. Miles, et al. v. City Council of Augusta, Georgia, et al. 551 F. Supp. 349 Plaintiffs contended the Augusta, Ga. Ordinance No. 5006 requiring them to obtain a business license for “Blackie – The Talking Cat”. It is undisputed that Blackie the cat is the main source for their income and requires them to spend most of their days soliciting money for Blackie’s performance. In the case Broadrick, et al. v. Oklahoma et al., 413 U.S. 601; 93 S. Ct. 2908, state employees appealed a district court’s decision that ruled in favor of defendants, the State of Oklahoma. The appeals court determined the Okla. Stat. tit. 74, §818, regulating political activity of civil servants, was constitutional because it gave clear warning of banned...

Words: 485 - Pages: 2

Premium Essay

M. S Mastectomy Case Studies

...Introduction M.S is a 49 year old white female with a diagnosis of right breast cancer in April 2013. Being the only daughter of a middle class family, she indicates no history of maternal or paternal breast cancer. Although she does recall her paternal grandmother having a mastectomy in the early 1970’s, but was never diagnosed or treated for breast cancer. Her medical history includes hysterectomy in 2005 and infrequent sinus infections. M.S works as a Registered Nurse, is active in regular exercise, and is married with 3 children and 3 grandchildren. Diagnosis M.S. was diagnosed with stage 2b Ductal Carcinoma in April 2013. Risk factors Risk factors can include family history, age, hormone replacement therapy, later age (over 35) pregnancy’s, and obesity. Although there are several risk factors associated with the development of breast cancer, there none specific to M.S. Clinical manifestations & Diagnostic tests M.S. first discovered a lump in her right breast with nipple inversion February 2013 while showering. Upon feeling a lump she contacted her primary physician and set up an appointment for an examination. Her primary physician recommended a routine mammogram and on completion of this testing there was sufficient evidence noted for the possibility of right breast cancer. A referral was then made to a general surgeon for routine needle biopsy for further diagnosis. The biopsy was conducted in the office and sent for examination with a third party. The returned results...

Words: 1463 - Pages: 6

Premium Essay

Case Study: H&M in Fast Fashion: Continued Success.

...Title: Case Study: H&M in Fast Fashion: Continued Success. Word count:2638 Abstract This report contains the analysis of value and culture of reputable apparel retailer H&M, as well as three analysis method, which is PETEL, Porter’s five forces, and VRIO framework, to analyse the external influence factors, competitors, and competitive advantages of H&M. Three new potential strategies are tested by using the model of Johnson and Scholes, and one proper strategy will be retained to carry out an Action Plan. 1. Introduction In 1947, the incredible apparel retailer was founded by Erling Persson in Sweden. Over half century, Persson’s 34 years old grandson, named Karl-Johan Persson, took over H&M in 2009(Regnér and Yildiz, 2014). As a pioneering ‘fast-fashion’ retailer, H&M spread in 43 countries, with 2,206 stores worldwide (Regnér and Yildiz, 2014). ‘Fast-fashion’ can be defined as a quick response to up-to-date luxury fashion trends in an affordable price, which meets the deeply held desires for young customers (Joy et.al, 2012). The store expansion has continued at several places, such as Denmark, the United States, Great Britain, also in several European Countries like Spain, Germany (Barman and Petersson, 2002). In order to sustain the growth rate of H&M, the CEO, in 2011, invested more stores and opened another 218 stores on the Champs-Élysées in Paris to strengthen their brand and ensure the future expansion. Following...

Words: 3142 - Pages: 13