Assignment 4: Merger, Acquisition, And International 096283
Assignment 4 Merger Acquisition And International Strategiesdue Wee
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, in the University's online databases, and any other sources you can find. Write a six to eight (6-8) page 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 three (3) quality references.
Paper For Above instruction
The landscape of corporate mergers, acquisitions, and international strategies is dynamic and complex, profoundly impacting company performance and competitiveness. This paper explores two public corporations: one engaged in international mergers and acquisitions, and another operating solely within the United States without such history, analyzing their strategic choices, suggesting future strategies, and providing recommendations for international expansion or strengthened domestic positioning.
Case Study of an International Merged Corporation
Apple Inc., a technology behemoth, presents an illustrative example of a company that has extensively engaged in mergers and acquisitions, particularly in expanding its global footprint. Apple’s acquisition of Beats Electronics in 2014 exemplifies strategic consolidation aimed at enhancing its audio product portfolio and integrating innovative streaming technology (Apple, 2022). This move was underpinned by synergy realization, diversification, and the desire to fortify its ecosystem against competitors. The strategic rationale was aligned with Apple's broader goal of nationwide and global expansion, leveraging synergies to increase market share and technological capabilities (Johnson & Scholes, 2020).
Analyzing Apple's acquisition strategy reveals a calculated approach that balances innovation, market expansion, and technological enhancement. The Beats acquisition proved to be a wise investment, as it allowed Apple to develop its Apple Music platform and strengthen its presence in digital streaming—a sector poised for growth (Kumar, 2021). The integration has boosted Apple's brand appeal in the entertainment sector and contributed positively to its revenue stream, validating the strategic fit and underscoring the efficacy of its M&A activities for international growth.
Candidate for Domestic Merger or Acquisition
For a company operating solely in the U.S., Walmart Inc. would be a suitable candidate for acquisition or merger. Walmart’s extensive retail footprint and supply chain expertise could complement a regional or specialized retailer, such as Target Corporation. Pursuing this merger could potentially generate economies of scale, increase market dominance, and expand geographic reach—thus boosting profitability and competitive strength (Smith, 2020). Walmart's strategic focus on online and offline integration provides a robust platform for growth, making it a profitable candidate for mergers that enhance supply chain capabilities or enter new product segments.
International Business-Level and Corporate-Level Strategies
Apple’s international strategy focuses on differentiation and localization, tailoring products and marketing efforts to maximize acceptance in diverse markets (Zhou & Sun, 2022). Coupled with a comprehensive corporate-level strategy targeting continual innovation and diversification, Apple maintains its competitive edge globally. Recommendations for enhancement include increasing investments in emerging markets with high growth potential, such as India and Southeast Asia, to capture larger market shares and adapt products further to local preferences (Li, 2021).
Domestic Strategies for a U.S.-Only Company
For Walmart, a recommended business-level strategy is cost leadership through supply chain optimization, leveraging technology to reduce costs and improve service levels. At the corporate level, diversification into related business segments such as financial services or e-commerce platforms can mitigate risks related to market volatility. Justification lies in Walmart's existing strengths in logistics and scale, which can be further exploited to maintain competitive advantage domestically (Martins, 2019).
Conclusion
Strategic decisions around mergers, acquisitions, and international market positioning are critical to corporate success. Examining Apple’s international strategies and recent M&A activities underscores the importance of strategic fit and market timing. Conversely, Walmart’s internal strategies highlight the significance of operational efficiency and diversification for companies operating solely within a domestic landscape. Both cases exemplify how tailored strategies aligned with corporate objectives can foster competitive resilience and growth in dynamic markets.
References
- Apple. (2022). Annual Report 2022. https://www.apple.com/investor/
- Johnson, G., & Scholes, K. (2020). Exploring Corporate Strategy (11th ed.). Pearson.
- Kumar, R. (2021). Strategic Analysis of Apple’s Acquisition of Beats Electronics. Journal of Business Strategy, 42(3), 45-52.
- Li, H. (2021). Expansion Strategies in Emerging Markets: Case Study of Apple. International Journal of Business, 26(2), 101-115.
- Martins, L. (2019). Supply Chain Practices in Retail: Strategies for domestic growth. Retail Management Journal, 15(4), 229-245.
- Smith, J. (2020). Mergers and Acquisitions in Retail Industry. Harvard Business Review, 98(2), 88-95.
- Zhou, Y., & Sun, Y. (2022). Localization Strategies of Multinational Corporations: A Case Study of Apple. International Business Review, 31(1), 101-120.