Merger, Acquisition, and International Strategies

Introduction

            Acquisition and mergers entails dividing, selling, buying, and joining of various business organizations that have same entities which can assist in maximizing their profits. The objective behind this entails ensuring which different business organizations has the potential of benefiting within their particular venture (Dringoli, 2016). This is to imply that they have the ability of sustaining their economic base without necessarily creating child entity or a joint venture. Similarly, an acquisition is one of the corporate actions in which a business organization opts to purchase another business entity or company (Helén et al., 2012). On this which is common which acquisition is that it is the larger company which ends up purchasing a smaller firm hence keeping its original name. The companies to be considered in this case are PepsiCo Inc. and Apple Company.

            Consequently, PepsiCo Inc. is one of the leading beverage manufacturing companies which have managed to merge with several small business organizations for decades that have passed. The company is mainly known for offering various products such as breads, dips, sauces, desserts, gourmet meals, and so on (Weygandt, 2009). The company has a history of engaging in various acquisitions and mergers as well as operating solely. This then implies that the company has the capacity of benefiting from corporate level and other business strategies which are further discussed below.

            Pepsi-Cola was founded by Caleb Bradham in 1890. Frito Company was also established by Elmer Doolin in the year 1932 before it was later merged with Pepsi-Cola to from PepsiCo and Frito-Lay in the years 1965.  In 1977, Pizza Hut Inc. was also acquired by PepsiCo in 1990 before acquiring Tropicana Products in 1998. Later on, South Beach Beverage Company was also acquired in 2000 and Quaker in the year 20111 (Weygandt, 2009).

            Currently, PepsiCo Company has managed to be one of the leading consumer beverage and foods in the whole world through producing several products as well as serving global customers. The company has also maintained trading shares on the New York Stock Exchange hence improving its economic base (Keown, 2004).

            By considering the above merger and acquisition strategies, it can be recognized that Pizza Hut Inc. is one of the most profitable company that the PepsiCo Inc. can take into consideration in case it desire to improve and maintain its economic base. The example, Pizza Hut Inc. have been recognized as being one of the largest pizza company in terms of the number of the outlets it has as well as the percentage of the market shares that it manages to hold (Stefan, 2007). Another reason that compels this company to be number one candidate is that it was recently anticipated to one of the subsidiaries of the Tricon Global Restaurants Inc which was basically formed as the result of spinning off the restaurant holdings of PepsiCo.

            Nevertheless, it should be recognized that the objective of merging and/ or acquiring Pizza Hut Inc. entailed sharpening the focus their management authority. The reason for that is because the management authority had already realized that the business had already an outstanding financial strength which was translated to a bright future. For instance, considering the distinctive dynamics of their restaurants as well as the manner in which they pack their goods, it implies that Pizza Hut Inc. will give the management authority of PepsiCo Company, the capacity of flourishing their economic base as much as their distinctive and separate corporate and management structures are concerned (Sadler, 2005).

            Another reason which makes Pizza Hut Inc. to be the best candidate is that the company already has several restaurants in several states, hence making its annual sales to be in billions. Typically, this kind of economical growth is enhanced by ensuring efficient delivering of their products at an affordable price. The management authority also had tried to ensure that they have adjusted their entrants into the existing market so as to stay ahead of their rivals (Stefan, 2007).

            The company’s growth philosophy mainly take into consideration the needs and complaints of their customers. In return, it makes their customers to be contented with the products and services they offer to them. This in return will enable the management authority to continue building a strong financial base so as to offer sufficient financial growth.

            This strategy will also enable the business to have the capacity of establishing other restaurants in any growing and emerging markets.  This will of course assist the management authority of PepsiCo to balance their appeal to millennial and their esteemed customers.  In working or collaborating with their franchises, it implies that the company will have the capacity of instilling more competitive values to their market (Sadler, 2005).  

            Apple Inc. is one of the American companies which have been regarded as being in the category of the transformative companies which have the potential of improving their economic base. For instance, the company has been having the capacity of transforming its economic base since it was founded to the modern date (Reiner & Joseph, 2014).

            Considering the fact that initialing the economic base of the company was mainly founded by Steve Jobs, the truth that the company had already established its economic base. Some of the economic strategies which was obtained was mainly revolving in the manner in which each of the individual had the capacity of maintaining their economic base (Joseph, 2013).

            On the other hand, it implies that the company had many reasons which had compelled it to encounter some extra ordinary success. This is evidence by the details which the management authority provided. On the same note, the objective behind this is to imply that the company had potential of improving its economic bases (O'Grady, 2009).  The reason for that is to increase their growth strategy. From the time the company managed to maintain its public image, it implies that it was possible to increase its sale to about $100 million. The only task the company had faced entailed restructuring the capacity of the management authority which was somehow making it bankruptcy (Joseph, 2013).

            On the other hand, any business organizations have the capacity of improving their economic base. But in order to do that, it is obvious that there are several goals to achieve. The forest one will entail dropping some of the costly projects it initially had as well as streamlining its growth focus. Currently, it should be realized that the company have been having the capacity of improving its economic base. What have been making it possible is because of the proficient management authority it recently recruited (O'Grady, 2009).

            With respect to that, it should be noted the company has the ability of pairing modern technology which is linked with other innovative business models. The establishment of Apple and iTunes application stores is one of the primary examples that the management authority had taken into consideration. This is what made it possible for them to come up with other means of generating revenue through making customers to use micro content platforms. In so doing it implies that the company has ended up becoming the main producer of iPods that are majority of the consumers largely depends on (O'Grady, 2009).

            Conversely, it should be acknowledged that one of the business strategies to be used is their financial statement. The reason for that is because financial statement is not something which can be easily comparable with the financial statements of their rivals in the industry. The reason for that is because it is the one which depicts the extent to which the company can remain to be ranked as being some of the top ten profitable companies globally (Ulijn et al., 2010).

            Another reason for that it is because majority of the money lending institutions usually generate revenue from the interest that the borrowers pay. But for the business organization like Apple Company, this is a different exercise as compared to other service and manufacturing companies. Likewise, the huge profit margin that the company has been realizing for years that has passed does not necessarily the kind of marketing success that the management authority does for other outstanding companies in the same industry (Buckley & Ghauri, 2002).

            Despite the fact that there are still other more profitable companies in the same industry globally, the truth is that the total revenues the company gets monthly or annually from its day-to-day operating activities makes it to be the outstanding distributor of such devices and services. This, therefore, suggests that the company have managed to remain one of the most quickly growing multinational companies because of the various product successes which they lounged for decades that have passed (Faulkner et al., 2017).

            Nonetheless, the management authority of the company should ensure that they have managed to stick to such an objective with vast content operations for instance Apple Store and iTunes. It is, therefore, clear that for the management authority to enable the company to continue growing, there was the need of having and sustaining impressive sales in other countries. The reason for taking such countries into consideration is because they are one of the largest and fasted growing wireless markets all over the world (Buckley & Ghauri, 2002).

 

 

References

Buckley, P. J., & Ghauri, P. N. (2002). International mergers and acquisitions: A reader. London [u.a.: Thomson Learning.

Dringoli, A. (2016). Merger and Acquisition Strategies. Edward Elgar Publishing

Faulkner, D. O., Teerikangas, S., & Joseph, R. J. (2017). The handbook of mergers and acquisitions. Oxford: Oxford University Press.

Helén, A, Virpi, H, & Fredrik N. (2012). Mergers and Acquisitions: The Critical Role of Stakeholders: Routledge Advances in Management and Business Studies. Routledge Press

Joseph, K. (2013). Critical marketing audit: The case of Apple Inc. GRIN Verlag Press

Keown, A. J. (2004). <>. Beijing: Qinghua University Press.

O'Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.

Reiner, E. J & Joseph, J. (2014). Apple Inc Patent Landscape Analysis – January 1, 1994 to December 31, 2013. IPGenix LLC Press

Sadler, R. L. (2005). Electronic media law. Thousand Oaks, Calif: Sage Publications.

Stefan, S. (2007). Case Study: Pizza Hut, Inc. GRIN Verlag Press

Ulijn, J. M., Duysters, G., & Meijer, E. (2010). Strategic alliances, mergers and acquisitions: The influence of culture on successful cooperation. Cheltenham, UK: Edward Elgar.

Weygandt, J. J. (2009). Financial accounting. Hoboken, N.J: Wiley.