A type A merger would increase market power which would increase market share. Increase in market share would increase profitability. A merger is also recommended because with Smithon’s positive income can offset with Johnson’s negative income and would result in reduced tax liabilities. A merger redefines the business world which allows for improve corporate business strategies and philosophies along with stronger alliances and less competition. There are many reasons for a merger but the most important is to maximize its profits.
What are the gains and risks involved in the entire transaction and how are mergers different from acquisitions? A Merger, as the name suggests occurs when two companies go ahead and merge into a bigger company, mostly under a different name. This is often a result of stock swap, which takes place when two companies agree to share the risks involved in the deal. A merger might resemble an acquisition, it is indeed quite similar, but it is named so in most cases due to political and marketing reasons to avoid media frenzy. Well, obviously a company acquires the other or two companies merge together to accelerate their growth without having to create a separate business entity.
Marketing expenditures could be more efficiently targeted on its regular customers and their need segments. Although it is not stated in the case, I strongly believe that Tesco also has benefited in having accurate information in real time stocks movements through this sophisticated data handling, which have big impact in supply chain management. The more effective supply chain, the more cost reduced, which means Tesco could compete with further price reduction and offering with products and services. Tesco's Clubcard IT system does not stop to that level only. To give more added value to its customers, Tesco integrates with several partners to provide another services such as telephone account and financial products.
AT&T can use these exclusive licenses to keep those customers even after they lose this exclusive access. … "IPhone Exclusivity" has a significant impact, so an analyst should put more weight into it. "IPhone Exclusivity" will have a long-term positive impact on the this entity, which adds to its value. "IPhone Exclusivity" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. * Diverse products Diverse products and revenue should help shield the business from shocks in any one part of their business.
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.
Foreign market shares are something else that can benefit Walgreens in the long run because global expansion can yield for a better competitive edge in the long run also given that the nature of Walgreens according to the Space Matrix is that they are aggressive a hard push into other countries would be an ideal situation. Another way for the company to be more competitive is to incorporate a better employee hiring structure and pay scale to encourage the limited number of Pharmacists to want to join and be a part of the company this would then increase the competition to hire new pharmacists because the working conditions would be better at Walgreens and
Even though the Brita products are a bit more expensive, people are willing to pay at that price for greater tasted water. Since Clorox is so successful, they have a significantly large marketing and R&D budget and that is where Clorox’s advantage is against their competitors. Clorox can further use this advantage. For example, Clorox can increase their advertisement either on TV or radio to attract new customers and to gain brand recognition. Clorox can also put more efforts on designing new
AST1/Task 1 Tiare Rush Student ID#000305228 Strategies for Motivating Scooter Dealerships Company S is excited to be ready to enter the motor scooter market with our newly engineered scooter with much better fuel economy than all of our biggest rivals. Although our scooters cost a fraction more than the ones on the market today, we believe that the value added will make our company successful. I have identified here several strategies to help motivate the dealerships to help us to move our product. 1. Avoid Taking Business from your Dealerships Our partnerships with our dealerships are built out of trust.
Also, fiber has the added advantage in its ability to carry large amounts of data at much faster rates than twisted-pair or coaxial cable. At the very least, I strongly recommend using fiber-optic cable for the backbone (BN), and using shielded twisted-pair for all work group cabling. Plan for the future by installing additional cables now, during the initial installation. The cost of cable is relatively inexpensive when compared to the cost to install that cable. Depending upon how quickly your organization grows, or adapts to new information technologies, as well as how networking technologies are changing – it makes so much more sense to have the additional cables already there waiting in case the organization decides to change to digital phones or a patch needs to be done.
If resources are allocated properly an effectively run government crime prevention program is invaluable. The cost-benefit analysis suggests that an economic activity should be expanded as long as the results provide more benefits than the overall costs. In both the U.K. and the U.S. the taxpayers are required to foot the bill for an ever-expanding crime prevention program. However, it is safe to assume that most individuals would rather invest in their own personal safety as well as the safety of their communities. A safer society would also see long-term economic benefits such as overall increase in GDP.