Merger, Acquisition, and International Strategies

Merger, Acquisition, and International Strategies
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Merger, Acquisition, and International Strategies
In today’s business world, distinction and uniqueness in which business is carried out is very fundamental to the success of the business itself. Many developments have taken place over the years whereby several business institutions have embraced developments such as Mergers and Acquisitions as to fully maximize the potentiality of the business and also maximize on returns. Mergers and Acquisitions have become growth strategic drivers for corporations as they shift their emphasis gradually from cost saving. International strategies for multinational companies has also proved to be fruitful to most businesses globally.
The Microsoft Corporation is one of the multinational corporation that has overtime embraced Mergers and Acquisitions. For instance, Microsoft Merged with Nokia Corporation in the year 2013 as a strategy to rip the benefits of the mobile industry (Contractor, 2011). With time Microsoft proceeded to acquire Nokia as it needed to gain total control of the corporation. Microsoft Corporation put into practice the defensive rationale strategy while acquiring Nokia as compared also to the case where it put the same strategy into use while acquiring Skype Inc. the reason for this strategy is probably due to the fact and fear that other grown and developed corporations such as Google and other potential competitors could acquire the same corporation, considering their financial power, and at the end use it to strengthen their ecosystem at Microsoft’s expense.
From the critical point of view, the strategy used by Microsoft Corporation to merge and acquire Nokia Corporation is to a large extent a healthy one. The reason for this is that the business world is full of competition and therefore it’s solely the responsibility of any institution to identify legal and healthy ways to outdo the competitors as to enhance the business’ survival and growth (Contractor, 2011). Taking advantage of the business’ financial strength, the merger between the two corporations was of importance and technology being a driving factor in business, Nokia Corporation was the best choice to hit on.
It is evident that from earlier on, the two business entities had good collaboration often but their development processes were different. Each company had its own resources, culture, tools and trade secretes that led to operational inefficiencies. Hence, by bringing Microsoft and Nokia together Microsoft can henceforth utilize its capabilities to make the two companies more efficient. By merging, Microsoft could also easily put into use its existing relationships with other existing partners, operators and developers to rip off the best from the business (Moon, 2010).
The merger between the two corporations also comes with several benefits as to mention. These include: Enhancement of diversification: this comes as the corporation, Microsoft, will now be able to reach more clients and provide its products to them. A wider market is thus created.
Secondly, with mergers and acquisitions comes synergy. Microsoft can take advantage of the merger, combine its activities with those that come with Nokia Corporation and therefore increase its performance and lower some of its operational costs. This increases its strength.
In addition, mergers and acquisitions increase Supply- Chain Pricing power. It is clear that a company that acquires another company it acquires its distributors. Therefore, Microsoft Corporation is able to avail its products to the market at a lower cost and also do shipping at much lower costs (Shenkar & Luo, 2011).
From the above analysis and review, it’s therefore clear that many benefits accompany Mergers and Acquisition and thus a better option for businesses that have a goal of growing and maintaining a bigger market share, like Microsoft.
Besides the benefits that accompany Mergers and Acquisition, there are other corporations that are yet to subscribe to this. One of the corporation in the United States which has not involved itself in Mergers and Acquisition is CVS Health Corporation whose headquarters are based in Woonsocket, Rhode Island. It is basically a health care company and also operates as a retailer countrywide. The company, has been ranked severally and is among the largest companies with its operations exclusively within the United States.
One of the most suitable company that has the potential of merging up with CVS Health Corporation for profitable gains is the Hospital Corporation of America (HCA). Based in Nashville, United states, HCA is among the nation’s largest healthcare provider companies, both locally and also internationally. The reasons why this will be a profitable merger to CVA Health Corporation is because HCA operates internationally having several branches in countries such as England. The result is that HCA has overtime acquired stability internationally, developed partners and also embrace international corporate level strategies (Shenkar & Luo, 2011). These are key to business growth and development, thus the merger will help expose CVA Health Corporation to international business environment. Profitability creeps in as CVA Health Corporation will realize new markets and exploit them to their benefit.
Second reason as to why the merger will be profitable is that HCA has a large business valuation compared to CVA Health Corporation. As such, HCA has with time invested heavily to being up to date technology and modern facilities. The merger will therefore serve to benefit CVA Health Corporation in the sense that it will also acquire the facilities of the same level as HCA. Both technology advancement and up to date facilities are fundamental in the development and market leading in the modern world. It is also clear that CVA has better applauded management systems. By a merger, CVA Health Corporation will have a share of the improved better management system leading to smooth running of its operations and more than satisfactory results at the end of the day.
In general therefore, the merger between CVA Health Corporation and HCA will with no doubt be of profitable gain to both parties and more so to CVA Health Corporation, assisting it to exploit its full potential and capabilities.
Basically, international business strategy refers to privat...