Strategic Operation Management

It has be abide by a prerequisite in todays highly competitive and fast evolving world for companies to grow to so win efficiency, flexibility in their operation and to be remunerative at the same time. Aside some other strategic options alike joint ventures and organic growth, mergers and acquisitions is becoming of the most preferred options for companies to achieve sustainable competitive, to deliver business growth by accessing clean market and increasing their existing market share so as to better position themselves in this era of incorporation where competition is at its peak and as well as to ensure their long term survival. Mergers and acquisitions are terms ordinarily exchanged among businesspeople however they are distinct from each other in practice. Merger is the consolidation of two companies which come together for mutual benefit and begin one entity in single law for example Sony and Ericsson, Daimler and Chrysler and Morrison and Safeway merger. An acquisition on the other hand, is simply a purchase of another entity whereby the target political party ceases to exist. In the past few decades merger and acquisition has become a common phenomenon which has brought radical transformation in the industries, chiefly reducing the number of players and increasing the size of those who remain.

The key article of faith behind acquisition and merger is to preserve and enhance shareholders comfort of both companies. This is in line with the primary objectives and fiduciary duties of tout ensemble companies board of directors to manage the business in the best sideline of its shareholders and by increasing shareholders wealth and delivering competitive returns to them. There is a common consensus among many executives, consultants etc that most of the mergers and acquisitions are likely to be high risk strategies that hardly create value or even tend to destroy shareholders value in the acquiring companies. This philosophy is supported by many scholars such as Johnson, Scholes and... If you want to get a full essay, order it on our website: Orderessay

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