Question

1. Despite research that shows mergers and acquis ion will mostly likely lose value, the business news reports many large activities continue. Senior managers say they can create shareholder value beyond just the integration of the firms. Describe how they justify M&A activity Use examples 2. How do you control performance in a diversified form 3. What are the advantages or disadvantages of a BCG matrix

Answer 1

As per policy, only one question is allowed to answer at a time, so find question 1 duly answered here :

1)

Under the mergers and acquisitions, the business is most likely to lose value because

1. The firms involved are having different culture and structures. They do not compensate each other corporate philosophy. For example, The “Tata Motors Limited” merger with “Jaguar Land Rover” has dropped the market share of the merged company in first few years.

2. The products and markets of trade are different, so dealing with both different situations under one management would be difficult. For example, The merger of Jet Airways (a premium class airlines) and Air Sahara (local small airlines) has put a great cost pressure on the company.

3. The demands and expectations of the employees and shareholders are different of the firms involved, so it would be difficult for firms to exists together and propel.

4. The merger and acquisitions overseas will involve different rules and regulations of each country, which may destroy the main objective of such merger.

Thus, a Merger or Acquisition shell dome proves to be a success because of the above mentioned shortcoming of M&A activities.

===============================