Opportunities and threats of merger

Type :

Term papers

Pages :

5 pages

Format :

.doc

Published date :

09/21/2009

Category :

Business & market

Sub category :

Business strategy

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Summary :

Abstract
Introduction
Underlying logic of merger
Opportunities in merger
Stratetic vision
1. Strategy
2. Economies of scale
3. Advantage of large size
4. Best practices
5. Globalization
6. Technology
Financial vision
Organizational vision
Threats in merger
Conclusions
Bibliography

Abstract

Business is subjected to a number of competitions forced by various factors like the bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitute products and services and the rivalry among the existing competition. In all these situations the main objective of any company is profitable growth of business to maximize wealth of its shareholders. Further, to achieve profitable growth of business it is necessary for any company to limit competition, solve the problem of slow growth, to gain economics of large scale and increase in income with proportionally less investment, to establish a transnational bridgehead without excessive start-up cost to gain access to foreign market, to achieve diversification and utilize under utilized market opportunities. Due to numerous and fast economical, technological developments, and rapid regulatory changes, it becomes indispensable for even small companies to grow rapidly without using large resources like new technology, upgraded plant and machinery, least knowledge updating to achieve effective reduction in cost and saving in time. In order to achieve goals, business needs to remain competitive and work towards its long term sustainability. Further, the liberalization and consequent globalization has resulted in to tough competition not only in Indian business market but globally as well.