Mergers and Acquisitions ultimately represent change within an organization. No other event in business can be as stressful or difficult as a merger or acquisition. The term “Merger” describes two organizations merging into one company and the term acquisition refers to the acquisition of assets by one company from another company. Mergers can also be driven by basic business reasons, such as bargain purchase. It may be more cost effective to acquire another company then to invest internally.
Organizations who are able to acquire or merge with other companies are able to expand their ability to forge partnerships with other corporate leaders. They are often able to expand their services internationally to gain more profits and extend their
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The company operates over 3,500 drive-in restaurants throughout the US, which makes it the biggest chain of drive-in restaurants in America. Sonic provides a variety of menu choices including hamburgers, sandwiches, frozen desserts, salads, wraps, and burritos. Sonic operates through two reportable divisions, company-owned drive-ins and franchise operations. About three million customers eat at Sonic every day and every order is prepared fresh and made to order for each individual consumer. In addition, Sonic Corporation currently operates 455 company owned drive-in restaurants and 3,117 franchise drive-in restaurants. Sonic has a presence in Colorado, Florida, Kansas, Missouri, Oklahoma, Tennessee and Texas. The company is headquartered in Oklahoma City, Oklahoma, the US (Research and Markets: Sonic Corporation: Foodservice Company Profile, SWOT & Financial …show more content…
Sonic Corporation has already used this strategy in the United States through offering Happy Hour, where customers can purchase drinks at half-price during specific times of the day (History of Sonic. Corp_Funding Universe, 2014). This strategy would attract the attention of many international customers, who are used to purchasing sparkling water with ice at fairly high prices. By offering the drinks at a reduced price in the nations, customers will be given the opportunity to discover the true quality of the drinks while the prices are low enough to enjoy. This allows the customers to become attracted to the product, which will cause them to become repeat customers regardless of the time of the
The average revenue that In-n-out makes is roughly $575,000 million per year. In-n-out mission statement is “Quality you can taste” which is primarily one of the reasons why they don’t want to franchise; they don’t want the quality to go down. In-n-out only has restaurants where their main distribution center is within 300 miles of the store because they don’t allow microwaves or ovens in the restaurant. Their main focus is the quality of the food and keeping it fresh with only the highest quality ingredients. In-n-out keep a very simple menu item which consists of burgers, fries, and milkshakes.
Moe’s Southwest grill is a casual atmosphere burrito bar owned by FOCUS brands. Moe’s headquarters is currently located in Atlanta, Georgia. Moe's Southwest Grill is a chain of about 360 quick-service eateries in 36 states that offer standard Tex-Mex favorites, including burritos, quesadillas, and fajitas, in a quirky, fun atmosphere. 800 more franchise deals signed and currently awaiting construction. Menu items are named after TV, movie, and pop culture references, such as the Art Vandalay, the Triple Lindy, and the Joey Bag of Donuts. Nearly all of the company's restaurants are operated by franchisees. Moe’s is a business format franchise and is available for single-location or multiple-location deals. The franchise fee for a single-location deal is $30,000 non-refundable. In order to open a store location a franchise is expected to have $200,000 in liquid capital and $600,000 in total assets. Moe’s Southwest Grill, a 2007 Top Ten Growth Chain according to Restaurant Hospitality and Technomic, is prepared for vigorous franchise growth. Based on the age this franchise and the growth they have experienced so far, this appears to be an excellent investment opportunity. Moe’s primary competition consist of Qdoba Mexican Grill and Chipotle.
One mode to achieve the comprehensive healthcare services is through the mergers and acquisitions. However, during the course when the integrated company takes place, there are many challenges that the new company should deal to have concerted mission to achieve the desired goals.
under a different name of the Top Hat. Tony Smith started the company as a
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.
As of 2016 there were 2,250 Chipotle restaurants worldwide. (Number of Chipotle Mexican Grill locations worldwide 2007-2016, 2017) Another interesting fact about Chipotle, is that in 1998 McDonald’s started investing in shares of Chipotle and by 2001 they had become the majority shareholder. In total McDonald’s invested over $360 million into Chipotle. (Myers, 2014) Although they have since split ways, the investment McDonald’s made into Chipotle helped to boost the growing power of the new to market concept burrito
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
Panera operates in three different business segments; company-owned bakery-café operations, franchise operations, and fresh dough operations. As of June 2013 there were 1708 operating Panera restaurants in 44 states as well as in Ontario Canada both company owned and franchise. That’s an increase of 328 restaurants in 4 years. (Panera, 2013)
Companies merge and acquire other companies for a lot of strategic reasons with different degree of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases.
It operates and franchises convenience stores around the world. It has been the prominent franchise in the convenience store industry for 46 years. (http://franchise.7-eleven.com) 7-Eleven is part of an international chain of convenience stores that is operating under 7-Eleven Japan Co. Ltd. The US subsidiary of the Japanese firm has its headquarters are located in One Arts Plaza building in Downtown Dallas, Texas. (http://corp.7-eleven.com) 7-Elevens are located in many different countries. Few of the largest markets being Japan, United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. They all have very similar 7-Eleven stores from the interior to exterior. The company entered franchising in 1964, also signing the first U.S. are licensing agreement in 1968. 7-Eleven operates more then 9,400 stores in Japan and Hawaii. (http://franchise.7-eleven.com)
Founded in 1953, Sonic has become the largest drive-in chain in the nation. Sonic was founded by Troy Smith, Jr. in Shawnee, Oklahoma. His dream was to own his own business. Sonic Drive-In keeps the 1950s alive through its chain of drive-in restaurants, each complete with speaker-based ordering systems and carhop servers - some on roller skates. Sonics top competitors are McDonald’s, Burger King, and Wendy’s. McDonald’s is the leading competitor in the fast-food industry. McDonald’s has the most restaurants with 12,380 locations and has over 364,000 employees. Burger King has 11,350 outlets in 57 countries and territories worldwide. About 75% is located in the United States. Wendy’s is the third largest quick-service hamburger restaurant chain in the world, with more than 6,600 restaurants in North America and international markets.
Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.
Sonic is the largest drive-in chain in the United States. Under the slogan "America's Drive-In," a Sonic features fast service by roller-skating carhops and unique menu items that cannot be found at McDonalds, Burger King, or Wendys. Sonic restaurants operate in 27 states so it is smaller than leading fast food chains however it is still a significant competitor. Founded by Troy Smith and Charlie Pappe in 1953, Sonic went from a single root beer stand to a popular franchise. In 1973, Sonic restructured as a franchise company and later became Sonic Corporation. The company experienced financial decline due to the lack of consistency from its franchisees so they were bought out by Sonic Corporation and restructured. In 1995, Sonic introduced "Sonic 2000," an aggressive multi-layered strategy to further unify the company in terms of a consistent menu, brand identity, products, packaging, and service. The campaign was successful and Sonic's brand recognition increased. Strengths include a strong competitive nature, flexible strategies, and employee/franchisor relationships. Weaknesses include lack of communication and domestic expansion. Threats in the external environment include company size, employee turnover, weak economy, rivals in similar industries, overseas expansion, and slow growth markets. Sonic can overcome these threats with opportunities such as global expansion, increase in the number of quick service consumers, and appealing investment opportunities. Alternative strategies and recommendations suggest that Sonic should concentrate on a low cost strategy and focusing on niches such as the health food market.
Beginning with one restaurant, Sonic has become the largest drive-in chain in the United States. While they are smaller than their competitors, they are still leading in sales growth, customer loyalty and customer satisfaction. Sonic restaurants saturate the southern U.S. This gives them the opportunity to expand to other area. However, Sonic is reluctant due to the colder climates and their basis as a drive-in restaurant. Sonic should look at adding or combining capabilities to it’s restaurants to increase competitiveness and make it easier for them to expand into other areas without limiting themselves.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.