For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
Procter & Gamble merged with Gillette on 2005; P&G and Gillette are now the largest consumer products company, in the United States, manufacturing Tide, Pampers, Crest toothpaste Signature razors, Duracell batteries, Braun and Oral-B brands dental care products, and head& Shoulders shampoo. Through the acquisition, P&G and Gillette centers on establishing more control over shelf space at the groceries, real-estates, retailers, and nation’s level (Chaturvedi, & Sinha.P, 2005). The merge also aims at escalating and growing P&G and Gillette influence against mass-market retailers like Wal-Mart Stores, which demands consumer- products suppliers to keep prices low. In the past, P&G acquired companies that produced the same products that matched with P&G products. However, the acquisition of Gillette Company is different, as this is a merger of two outstanding consumer products companies. This is a great deal for the two companies as both of the companies are corresponding in their cultures, influence, vision, and power, this merger creates the possible advanced sustainable increase and growth.
The merger of the two companies has facilitated the increase in inventory and sales. This is imperative in an industry where growth in sales is difficult to achieve, also through the elimination of jobs the two companies will save on costs. The two companies also benefit from acclimatizing and adapting each other’s joint research and development, and also technologies. The merger also has increased resources that allow exhaustive mutual supply chain inventiveness in a more cost effective way. Consequently, the acquisition and the merger of P&G and Gillette Company have reduced the media and the advertising costs due to the superior negotiating power (The wallet Street Journal, 2005).Finally, the merger has exposed the two companies to emerging markets and also has permitted Gillette Company progress it’s inventory days as it has insufficient operations. Also, the merger has allowed P&G to join the world’s foremost and premium products under one roof; this ensures the company to gain extra holding in the imminent and impending market of men’s shaving products. This is an area that its competitors cannot access at the moment. P&G made a wise decision to merge with Gillette Company as this has put the Company as the leading in the consumer industry.
For the corporation that has not been involved in any mergers or acquisitions, identify one (1) company that would be a profitable candidate for the corporation to acquire or merge with and explain why this company would be a profitable target.
Lowes Companies, Inc. functions as a home improvement retailer and it was incorporated 1952. Lowes Company operates 1840; home improvement and hardware stores, around 1793 stores situated in 50 states in the United States (RUETERS edition, 2015). Every store in Lowes Company carries a selection of national brand-name merchandise such as; Pella windows and doors, Stain Masters carpets, Valspar paints, Whirlpool appliances and water heaters, LG, GE, and Samsung appliances, and Dewalt power tools. Also, the company offers products and services for remodeling, repairs, maintenance, and home decorating. The Company also provides home improvement products in different groupings like lumber and building materials, tools and hardware fashion fixtures, lawn and garden, storage and cleaning, and outdoor power equipment. Lowes Company also provides comprehensive protection plan like; the out warranty repair services, and also it offers installation services through self-sufficient contractors in various groups of the products. The individuals that access the products of Lowes company are the renters and homeowners, the do -it- for me customers and the do-it- yourself customers. Further, Lowes Company sustains and maintains the communities it serves through programs that center on K-12 public learning and community improvements projects.
If Lowes Company, Inc. settles on merging with the Home Depot Company will be a great merger of the two companies as both, compete in the same industry. The two Companies will be able to serve and satisfy their customers through advanced customer services, discounts, vouchers, tickets, and coupon. Also, the two companies will be able to venture into new markets and become the leading merger in the building and construction industry (Arnold, 2003). Home Depot and Lowes Companies are both competitors, and Lowes merging with Home Depot will be in a position to compete with their competitors, and offer cheaper prices on their services and products. Acquisition and merging are a part of home improvement industries, and through Lowes Company merging with Home Depot Company will increase sales and revenue expansion the will be a gainful objective for the two companies.
For the corporation that operates internationally, briefly evaluate its international business-level strategy and international corporate-level strategy and make recommendations for improvement.
International level strategies are basics, and fundamentals for company’s procedures, practices and the ways in which its transactions work together to achieve particular objectives and targets. The strategies are divided into two categories this include corporate and also business-unit strategy (Arnold, 2003). The Corporate level strategies centers on the implementation of dependable methods across corporate to recognize the existing opportunities in the external environments. The Business strategy focuses on the company’s decisions implemented to create and advance business transactions; this gives a competitive advantage over the competitors.
The Coca-Cola Company is a worldwide Company; its headquarters are in the United States in Georgia. The company manufactures retails and markets its products, which are beverages that are non-alcoholic. The brand of Coca-Cola Company recognized globally, and it’s a public company with its shares traded on the New York Stock Exchange. The Coca-Cola Company implements differentiation approach; the strategy has enhanced the company to be exceptional from other companies providing the same products. This has made Coca-Cola Company to gain competition advantage against its competitors. Also, the Company differentiates its products through diversity in advertising and marketing all over the world. The marketing strategies are implemented to enhance the potential markets remains dependable to the products. Further, the company is the most instituted, founded, and prevalent in the world. The Company has penetrated over 200 countries, and its brands are over two decades in the market.
The success of the company has come because of implementing the corporate strategy; the mission statement of Coca-Cola Company declares that the Company dedicates in stimulating the world, rousing happiness, and cheerfulness, and establishing value and difference (Arnold, 2003). The Coca-Cola Company can improve its international business- level strategy through performing assessment models, which include relative assessment, fundamental pricing evaluation, Human Resource practices, and economic profit breakdown, since the company has an outstanding standing for capitalizing on shareholder significance.
For the corporation that does not operate internationally, propose one business-level strategy and one corporate-level strategy that you would suggest the corporation consider. Justify your proposals.
Menards, the home improvement company, has in operation for the last 57 years, it is a private company, and the executive keeps a low profile. Also, the Company has established stores throughout the Midwest; also it stocks stuffed animals, groceries drugstores staples, clothing, and jewelry. The Menards company business-level strategy can be gaining competition advantage against its competitors. Although it has ferocious competitors such as Home Depot and Lowes Company, still Menards can work hard to gain the competition advantage against its competitors (Arnold, 2003). Further, the Company should not close its doors; it should aggressively create and apply strategies that will enhance it gains the competition advantage.
Also, Menards Company should strive at advancing its customer care services, for example, the company can group its customer services in three groups such as professional customers, do-it-for -me customers, and do-it- yourself customers (Arnold, 2003). This advanced customer care services will attract more customers to the company, increasing the company’s sales, and the most significant advantage will be to meet the expectations of their customers. Therefore, many customers will be satisfied with the Company’s products and services. The company can also initiate and implement community programs this will work as a marketing strategy as they are serving the communities they will also be selling their products and services. Consequently, Menards Company can also implement a business strategy that centers on providing an extensive assortment of the first rate, and matchless products and services at a fair price. Through integrating training and managerial skills, which will ensure the managers have become more efficient and dependable leaders, this strategy if well implemented can work wonders for the Menards Company.