Ask Question, Ask an Expert

+61-413 786 465

Ask Financial Management Expert

Response #1 (Nancy)

Mergers or Acquisitions (M & A) - this publication: Mergers and acquisitions covers all aspects of mergers and acquisitions. Beginning with the pre-combination phase (the period between the deal's announcement and the legal approval to start integration planning), Combination phase (more often than not dominated by political wrangling) and Post-combination phase (critical that both sides are involved in the strategic logic, understanding their roles and responsibilities.

Joining two wholly independent organizations requires strategic management of organizational, cultural, psychological and transition management challenges.

M & A is a way for business to enhance their competitiveness and generate transformation change as the marketplace continues to globalize. This enables companies to achieve economies of scale, diversity and enter new markets.

M & A is discussed in our text on page 197 - 198. Like many business transactions there are pros and cons that must be addressed. A few positive results could include obtaining valuable resources, consolidate (forcing other market players to merge), enter new market segments and offer the opportunity to synergize core competencies, shared activities and increase market potential (Dess,, 2014).

Negative results can include high cost of takeover premiums, competition can copy synergies acquired through acquisition, managerial egos deter sound business decisions and managing intended cultural benefits (Dess, et. al., 2016).

Transnational Strategy - this eBook: Transnational Strategy provides a quick synopsis to get anyone up to speed on the critical elements of global, multidomestic and transnational strategy. Major hurdles that have taken place over the last decade include; landscape of the global economy has dramatically changed, technology has taken over the way business is conducted and the inherent desire to be different in the global economy.

For this discussion, the focus is on transnational strategy, how best to determine the middle ground between a multi-domestic strategy and a global strategy. An organization entering a transnational market must be able to balance efficiency with local preferences. There is a great importance and often-overlooked strategy in a transnational market is how to tailor country-specific strategies to target consumers in these countries.

Transnational strategy as discussed in the text on pages 235 - 236 has a goal of optimize global competitiveness for the greater good of the newly formed organization. Several things to consider include but are not limited to: thoroughly vetting the location (perfect location does not ensure quality and cost factors), promote knowledge transfer as quickly as possible (keeping both sides informed to encourage this transfer), what is the viability of economies of scale and how quickly can the incoming team adapt to the local team (Dess, 2016).

Porter's Diamond of National Competitive Advantage - this article: Porter's Diamond of National Competitive Advantagediscusses the competitive theory that explains the achievement of a country's industrial and a firm's competitive advantage. The re-formation of the Porter's Diamond model assists in meeting the needs in trends of international and sustainable development. It is critical to note that sustainable development concept is clearly connected with competitiveness.

In the text this is discussed on page 218 - 219. As the world continues to shrink globally, many organizations are pursuing international expansion. Increasing the sizes of markets is an obvious way to gain collateral for expansion. Any time a market expansion is executed, notwithstanding globally, scale of operation is exponentially increased providing larger revenues. Proper execution is a win-win (Dess,

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93111782

Have any Question? 

Related Questions in Financial Management

Portfolio projectexotic food inc capital budgeting casecase

Portfolio Project: Exotic Food Inc., Capital Budgeting Case CASE SUMMARY Exotic Food Inc., a food processing company located in Herndon, VA, is considering adding a new division to produce fresh ginger juice. Following t ...

Company overviewintroductory paragraph summarize the

Company Overview Introductory paragraph. Summarize the section in 1 - 2 paragraphs including the history, current market, and the overall image of the organization. History Current Market Include a brief 2 - 3 paragraph ...

Answer the following questions 1evaluate the criteria fel

Answer the following Questions : 1. Evaluate the criteria FEL uses to assign managers to project teams. What effi-ciencies do these criteria create? What are the resulting problems? 2. Why is it even more important that ...

Introductionthroughout this course the focus has been on

Introduction Throughout this course, the focus has been on the problem-solving model and learning how to complete the steps. In addition, you learned how to utilize analysis tools to help you with some of the problem-sol ...

Question 1 discuss valuing bonds and how interest rates

Question : 1) Discuss valuing bonds and how interest rates affect their value. Also consider the importance of the yield-to-maturity (YTM). 2) Discuss common stocks and preferred stocks. Also, which common stock valuatio ...

Discussion board unit the balance sheet - liabilitiesin

Discussion Board Unit: The Balance Sheet - Liabilities In 300-400 words, define and discuss the following: Estimated and contingent liabilities The difference between gross and net take home pay The difference between em ...

You have owned and operated a successful brick-and-mortar

You have owned and operated a successful brick-and-mortar business for several years. Due to increased competition from other retailers, you have decided to expand your operations to sell your products via the Internet. ...

Assignmentyou may need to make assumptions for some of the

Assignment You may need to make assumptions for some of the problems. You will not lose points as long as you state these assumptions, and your constraints are logical -according to your assumptions. YOUR MODELS MUST BE ...

Using the framework discussed in the background readings

Using the framework discussed in the background readings, critically analyze General Mills' strategic choices at the Corporate level (remember that "corporate" level is the very highest level of the organization, with lo ...

Assignment the art of negotiationresearch a current

Assignment : The Art of Negotiation Research a current conflict or negotiation in progress from the last 6 months like peace talks in the Middle East, a corporate merger, a labor dispute, etc. Write a six to eight (6-8) ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As