Choose Two Public Corporations In An Industry 422173

Choose Two 2 Public Corporations In An Industry With Which You Are F

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. 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.

Paper For Above instruction

The dynamic landscape of corporate strategies involves mergers, acquisitions, and strategic expansions that are pivotal for growth and competitiveness. This paper examines two publicly traded companies within the same industry—one with a history of mergers and international operations, and the other operating solely within the United States without any mergers or acquisitions. By analyzing their strategic moves, international strategies, and potential growth avenues, this study offers insights into optimal corporate development strategies.

Case Study 1: International Corporation with Mergers and Acquisitions

The first company selected is Amazon.com, Inc., a global e-commerce and cloud computing giant. Amazon has a history rich with acquisitions, including the purchase of Whole Foods Market and the acquisition of robotic companies like Kiva Systems. These strategic acquisitions have enabled Amazon to expand its market share, diversify its product offerings, and enhance its technological capabilities (Amazon, 2022). The company's international strategy hinges on localizing operations, adapting to regional consumer preferences, and establishing regional fulfillment centers to ensure quick delivery (Luo & Bhattacharya, 2006).

The strategic rationale behind Amazon’s acquisitions was primarily to gain access to new markets, acquire innovative technologies, and reduce competition (Davis & Cobb, 2010). For instance, the purchase of Whole Foods allowed Amazon to venture into the grocery sector physically and integrate online and offline shopping experiences. Critics and analysts generally regard Amazon’s M&A strategy as successful; it has solidified its market dominance and driven revenue growth (Smith, 2021). However, some point out the risks involved, such as overextension and integration challenges.

Based on Amazon's strategic decisions, I believe the acquisitions have been a wise choice. They facilitated rapid expansion, diversification, and technological advancement, which are crucial in a highly competitive and fast-evolving industry. The company's approach of leveraging acquisitions to enter new sectors aligns with strategic management theories emphasizing diversification and integration (Porter, 1987).

Case Study 2: U.S.-Only Corporation Without Mergers or Acquisitions

The second company evaluated is The Hershey Company, a leading chocolate and confectionery manufacturer operating solely within the United States. Hershey has historically focused on organic growth through product innovation, branding, and distribution expansion without engaging in mergers or acquisitions (Hershey Company, 2023). Given its strong domestic presence, Hershey could consider strategic acquisition of a regional candy manufacturer or a complementary snack food company to enhance its market share and product portfolio.

A prospective acquisition target could be a regional snack company like Lancaster Colony Corporation, which specializes in snacks and has a strong regional presence. Acquiring such a company could provide Hershey with new product lines, increase economies of scale, and facilitate entry into new markets with relatively low risk (Hitt et al., 2017). This move would complement Hershey's existing portfolio and help sustain growth amidst changing consumer preferences towards healthier snack options.

International Business-Level and Corporate-Level Strategies

Amazon’s international strategy is primarily based on differentiation and localization. Amazon seeks to tailor its offerings to regional customer preferences, comply with local regulations, and establish local logistics infrastructure. Its corporate-level strategy incorporates diversification across various sectors such as cloud computing, entertainment, and logistics (Amazon, 2022). To enhance its international strategy, Amazon could invest more in regional partnerships and adapt its pricing strategies to local economic conditions, which would help mitigate foreign market risks.

In contrast, Hershey’s current strategy emphasizes product differentiation through branding and innovation within the domestic chocolate and snack market. For international expansion, Hershey should consider a combination of market development and strategic alliances in emerging markets to capitalize on growth opportunities while managing risks associated with international operations (Hitt et al., 2017). Forming joint ventures with local firms can provide market insights and facilitate easier market entry, especially in regions with cultural differences and regulatory barriers.

Proposed Strategies for the U.S.-Based Corporation

For Hershey, I recommend adopting a market penetration strategy supported by product innovation to increase its domestic market share. Simultaneously, it should consider a diversification strategy at the corporate level by exploring health-oriented snack segments, aligning with current consumer health trends (Grant, 2019). Additionally, forming strategic alliances or joint ventures with local snack manufacturers in emerging markets can facilitate international expansion with lower risk.

Conclusion

The strategic analysis of Amazon and Hershey reveals distinct approaches aligned with their operational scopes and market conditions. Amazon’s aggressive acquisition strategy and international localization have positioned it as a global leader. Hershey’s conservative organic growth strategy keeps it strong domestically but leaves room for international and strategic expansion. Implementing the recommended strategies can enhance their competitiveness and ensure sustainable growth in their respective operational environments.

References

• Amazon. (2022). Annual Report. Amazon.com, Inc.
• Davis, G. F., & Cobb, J. A. (2010). Resource dependence theory: Past and future. Research in Organizational Behavior, 24, 40-57.
• Grant, R. M. (2019). Contemporary Strategy Analysis. Wiley.
• Hershey Company. (2023). Annual Report. Hershey Trust Company.
• Hitt, M., Ireland, R., & Hoskisson, R. (2017). Strategic Management: Competitiveness and Globalization. Cengage Learning.
• Luo, Y., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70(4), 1-18.
• Smith, J. (2021). Amazon's Strategic Growth through M&A. Harvard Business Review.
• Porter, M. E. (1987). From competitive advantage to corporate strategy. Harvard Business Review, 65(3), 43-59.