Mergers and Acquisitions Intro At the beginning of the 21st century the future of the beverage and food industry seemed to be unclear. With a slow growth rate of only 2% per year, food and beverage companies were desperately seeking the ways to enhance sales and profits. Many companies such as Kellogg's, Sara Lee, Quaker Oats and others considered merging to be a solution and thus the turn of the 21st century was marked by $ 30.5 billion worth of mega-mergers . One of the largest mergers was the merger between PepsiCo and Quaker Oats which occurred on August 2,2001.
A) According to the article:’ Time Warner Cable to Merge with Comcast Corporation to Create a World-Class Technology and Media Company”, Time Warner Cable and Comcast came to a friendly agreement in which the board of directors approved the stock-for-stock transaction where Comcast will acquire 100% of Time Warner’s cable shares outstanding. This acquisition will be both beneficial for Comcast’s consumers and their shareholders where this merger will create a technological innovating company with ground breaking products and services. This acquisition will be accretive to Comcast’s free cash flow and yield many synergies for both companies. As Robert D. Marcus, Chairman and CEO of Time Warner Cable said, "This combination creates a company that delivers maximum value for our shareholders, enormous opportunities for our employees and a superior experience for our customers". Through this merger, many consumers and businesses will benefit from the new company with cutting-edge products that will broaden the technological platform in the media. Not only this merger will reduce competition, but also will add to Comcast the 11 million TWC subscribers, which will be totaled in around 30 million subscribers and will expand to Comcast’s geographic footprint in the media platform.
The September Duke University/CFO Business Outlook survey indicates that three-quarters of the CFOs surveyed expect M&A activity to slow. Of particular interest is the suddenness of this change in expectations. In the prior quarter’s survey, the majority of surveyed CFOs expected M&A to “stay strong through the remainder of 2007.”
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The Big Bucks Corporation and Consolidated Industries, two major corporations have just merged. The two companies have picked Nashville, Tennessee as their desired location for a six-day planning meeting bringing together the upper management, which will now consist of 250 executives. Nashville, Tennessee is a great location for a meeting, there is plenty to do and lots of DMCs that can help me plan companion programs, trips and tours for the wives of the executives. Destination Nashville, is a global DMC partner as well as the Gaylord Opryland Resort’s go-to for anything events related. They specialize in Meet & Greets, Tours, and VIP Activities, Shuttling and Transportation, Evening and Daytime customized services for all types of guests. Blue Spark Event Design has a Nashville location. They strive to create more for the guest traveler to Nashville and specialize in historical tours, sports tours, museum visits, and of course anything to do with country music. Blue Spark Nashville can also help companies with meeting planning, site selection, hotel sourcing and contract negotiation, registration, and if necessary audio visual requirements. Now, saving the best for last, The Key Event Group is Nashville’s premier DMC. They pride themselves on delivering creative, high impact events and have been doing so since 1978. In conjunction with their high impact events, they also do team building activities, Full, Half Day, Pre and Post meeting Tours, they visit historic Nashville sites, as well as plenty of sporting options. They too, specialize in Meet & Greets. I believe that each of these DMCs would make a great choice simply because they all offer pretty much the same thing. The only differences would be how long they have been oper...
Mergers is when two firms or entities, often of about the same size, agree to become one single new entity or organization rather than remain separately owned and/or operated. This kind of action is often referred to as a ‘merger of equals’. Financially, the stocks of both companies are migrated into a new stock with the new name of the company issued. (CIPD, 2009)
An oligopoly consists of a small number of interdependent firms. The cereal manufacturing industry consists of four different firms that control almost all of the market. These companies are Quaker Oats, Kellogg, Kraft Foods, and General Mills (Lazich 68). In 2001, General Mills and Kellogg led the industry with a market share of 32.2 and 30.7 percent, respectively (68). Kraft Foods had a market share of 16.3 percent and Quaker Oats had a market share of 19.0 percent (68). The remaining 11.8 percent of the market share was held by other firms (68). In 2002, Kellogg took the lead with 32.7 percent followed by General Mills with a 31.8 percent market share (Reyes).
Corporate Downsizing Organizations in every segment of business, industry, government, and education are downsizing. Downsizing is and has been a controversial phenomenon in the last few years. The controversy that surrounds downsizing may be better described as a debate in organizational theory about whether change is adaptive or disruptive. The issues which establish the outcome of the controversy include why the downsizing is taking affect, how it is implemented, and what steps are taken to enhance its effects on organizational performance. The reasons for corporate downsizing are presented in many forms. Some companies downsize due to technological changes such as automation, which brings about the need for a reduction in the production workforce. Others may feel that competitiveness with other companies warrants the need for a reduction in the workforce. Financial setbacks due to customer demand, market shares, and loss of revenue could also initiate the need for downsizing. When will it end? Experts say it won't. For instance, the North American Free Trade Agreement (NAFTA) was established as a universal trade agreement between the US, Cannada, and Mexico to allow free imports and exports.
Mergers among companies is not a new concept, in fact, this concept has been used since the 1980s. There are a few reasons that companies decide to merge. A merge can increase the performance which produces a stronger company. A stronger workforce is the dream of all companies. Companies love the idea that they are able to produce a product in half the time. Diversification is another reason companies like mergers. A company that merges to diversify may acquire another company in a seemingly unrelated industry in order to reduce the impact of a particular industry's performance on its profitability. Companies seeking to sharpen focus often merge with companies that have deeper market penetration in a key area of
An acquisition can be defined as the consolidation of companies or assets. This is basically when one company is purchased by another and as a result, no new company is formed. There are several different drivers of a successful acquisition; these comprise of due diligence, strategic drivers, and aligning cultures.
Mergers usually take place when companies are struggling on their own, but find hope and comfort in uniting with another company. This unite is a great way to create new companies, combine revenues, establishing new policies, procedures, and objectives. It also opens up new doors, and allows new companies to expand in so many different aspects of their business. Part of the mergering phrase should include the planning process to assist with determining the objectives of the business’ long term investments goals. This could also open up the door for new products, new machinery, new plants, replacement of machinery, new locations, new projects, as well as the tangible and intangible things both companies already have.
While this past year’s financial situation has not been released yet, Kellogg has been earning a steady amount of profit in the last five years. Nonetheless, the growth rate and revenue fluctuate positively and negatively, which means Kellogg struggles to grow year after year. It has notable years when it introduces new products or it acquires other companies, but mainly because of a declining economy and a fading trend for cereal in the mornings, Kellogg’s has experienced declines in revenues (Kell, 2014, para. 6). Specifically in 2014 and 2012. Research has shown newer generations like the Millennials prefer alternatives to cereals for breakfast, which has made it hard for Kellogg’s to grow their business. The corporation usually redeems
Over the last few years, the pressures emanating from international competition, financial innovation, economic growth and expansion, heightened political and economic integration, and technological change have all contributed to the increased pace of mergers and acquisitions.
Mergers mean two or more companies combining together to form one business or firm. There are six different types of mergers: Horizontal, Vertical, Conglomerate, Market extension, Product Extension and Diversified activity.
b.) PepsiCo is a global food and beverage corporation based in New York. The company was formed in1965 with the merger of Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo grew bigger with the 1998 acquisition of Tropicana and the 2001 merger with Quaker Oats. The company has several different products that are known globally. PepsiCo offers twenty-two iconic brands to over more than two hundred countries and territories. The iconic brands generate more than one billion dollars in annual retail sales.
Pepsi shifted its focus from a beverage company into a food and beverage company when it merged with Frito-Lay in the mid 1960s. Frito-Lay was also a product of a merger between two dominant snack food companies, the Frito Company and the H.W. Lay Company. In...