Merger, Acquisition, and International Strategies

Q1

            A union happens when one company presuppose all the incomes and the loss of another company.  The gaining company maintains its identity while the gained companies depreciate. A main vote of the shareholders is gained to approve the union.  A union is a type of possession.  A company can have another through several ways such as buying some or all the companies profits, stocks and its products.  Thus union is another type of possession and is done in the wishes of having an economic benefit.   For such business to be complete, the companies participating must be valuable more than they were.  Some of the possible benefits of the unions and the possessions are such as gaining the economic scale, mixing resources and eliminating loses.  Since unions and possessions are so complicated, it can be very hard to assess the transaction, evaluate the connected costs and benefits so as to sustain the resulting taxes and lawful matters.  In the current international business market, companies have to develop some as to survive thus one of the important way to advance is to partner with other companies or having other companies (Hitt, Ireland & Hoskisson, 2007).

            For instance, a tool and a die company can buy each other but in contrast, the merger focuses on spreading forward and backward in the chain of distribution on the raw material source or to the proposed customer.  For instance the company of the auto parts producers can buy an auto shop, thus a conglomerate is formed through the union of unconnected businesses. This involves a legal transfer of the costs and must be signed by the stakeholders of the company that is selling its products.  The company that is having these products makes an offer to the aimed company.  The union and the possessors should help the business to cut the business costs and increase the revenue if they are correctly implemented.  That is the action that was taken by the Delta when it gained the Northwest Airlines and the company had a successful incorporation of the different technical systems in that every airline used according to the union.  The Delta employee had challenges of the upcoming computer systems as they had their force to do so while their customers did not take a note of it that the airline worked opposite with others.  The company later had its profits in 2010 although it has been facing some challenges but is on the right business track (Hitt, Ireland & Hoskisson, 2007).         

Q2

            For the organization that has not been engaged in any unions or possessions, I focus mainly on the business domain.  The main company that is well known not to be involved in merger is the Rent- A- Center.  This is the largest rent to the possessor operator in America which has about 36% of the market share as assessed on the year 2012.  Later in the same year, the company operated on closely 3, 094 company possessed stores globally in Canada and Mexico. The company has high quality and long-lasting products such as the main electronic producers, applications, computers, furniture and all the electronic devices.  These are all under elastic rental buy approvals that permits the customers to have possession of the devices at the finale of the approved rental time (Hitt, Ireland & Hoskisson, 2007).  

            Rental buy agreements are made to demand to a number of customers by permitting them to have products that may be unable to acquire due to less resources of capital or lack of entrée to tribute. These approvals also focus on the customers who do not have permanent necessity or those who wish to rent rather than buying the products.   According to their website, rent-A- Center had yearly revenue of many billions in 2010 and they seem to have a durable improvement. The company can be the best possessor of other companies such as the best buy which are having the challenge to provide a substitute market and course (Hitt, Ireland & Hoskisson, 2007).   

Q3

            The global plan is a plan whereby the company sells its goods and services outside the home market.  As it happens with other human actions, plan is a vital factor for the success of any business.  The type of the organization plan that a firm chooses will have an outcome on the selection and the accomplishment of the business level plan.  Based on the company, the global spread gives the chances for new purchases and assets.  In some events, it can happen that even the profit in the companies are degraded in the domestic markets which makes the global spread the only chance for the profits.  For instance the less profits that were in the domestic markets in China was a main reason that the Chinese Consumer electronics company decided to have a plan on the global expansion.  This company has then developed over the past years having new firms and development in its markets have grown in its market basis in their two main consumers of the electronic manufacturers, the American and the European connections (Hill & Jones, 2012). 

            Organizations employ diverse types of global plans so as to advance their profits and this depends on the companies that they are working with, the type of industry they have and the customers that they are selling their products to. The main global business plan is the import and the export of gods and services.  Firms mainly have their financial resources from the global countries that are based on the global approaches.  This is a plan that is used in the main companies in that they import their products internationally at a cheap price that makes its able for the company to give fewer prices in their products.  Based on the international business level plan, the domestic operating country is the most vital source of the competitive benefit.  Companies must start and use the appropriate plans that have the advantage of every cooperating country features.  The success in the producing country permits the firm to have plans in the international markets.  Thus a company develops making the importance of the country’s foundation to lack interest (Hill & Jones, 2012). 

Q4

            According to the company of the Dollar General, it can be said to be the best concession vendor. The buyers of the companies need simple and well reviewed assortments of the products at very low prices in their locations.  The company is amid the largest buyers of the quality brands from America that are mainly trusted by the producers.  The company competencies should mainly consider the satisfaction of their customer needs and their wants in order to have average benefits.  This is done through the business level plans.  Business level plans aspect events that are used to give value to the clients and have a competitive benefit by removing the main competencies in the main personal products and services in the markets.  Business level plan focuses with the company’s position in the industry connected to the participants and to the five features of the participation (Kerin, Hartley & Rudelius, 2015).     

            There are four hereditary plans that aid companies to develop a competitive benefit on the industrial challenges.  Industries opt to participate across the wider markets of a main market.  The Dollar general firm is the leadership in costs in that they participate widely based on price.  Price focuses on the domestic competence in order to have a level that will have average benefits and price to the customers so that they can buy the product.  The main organizational strategy level is based on the wider level of the company’s strategic plans while the cooperation of these organizations and its capabilities and the wishes of the shareholders.  This can be called the whole plan level of the firm.  It can be called the huge overview of the company and includes making a decision on which products have market competence and on which geographic regions they are based. As the definition of the market is on the level of the business plans, the accountability for the diversification or the input of more products also falls up on the line of the cooperate plan.  Whether they participate directly or with other companies, the strategic plans applies within the dominion of the company’s level.  The Dollar general company should establish a strategy on the corporation so that they can develop in the global markets.  This plan is focused on winning the wider market share at the expenditure of the short term income (Kerin, Hartley & Rudelius, 2015).      

 

 

 

 

 

 

 

 

 

 

Reference

Hill, C. W. L., & Jones, G. R. (2012). Essentials of strategic management. Australia: South-Western/Cengage Learning.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2007). Strategic management: Competitiveness and globalization; [concepts and classes]. Mason, Ohio [u.a.: Thomson South-Western.

Kerin, R. A., Hartley, S. W., & Rudelius, W. (2015). Marketing.