Mergers, Acquisitions and International Strategies of Disney-Pixar and The Clorox Corporation Danielle Y Williams BUS 499: Business Admin Capstone Professor: Dr. Debra Sherrill December 1, 2014 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. Mergers and acquisitions are very important both from the economic point of view, as well as of globalization of the world economy. Thanks to the increased growth of the world economy the number of mergers and acquisitions has increased around the world. Mergers …show more content…
The horizontal acquisition of one company is obtained by another in the same industry. The new combined company is in a better competitive position than the standalone companies that were before the joining of the two. Horizontal acquisitions expand the capacity of the acquirer, but the basic business operations remain the same. The merger and acquisition between Disney and Pixar were the wisest choice. These two companies are the best of the best in what they do and can enhance each other to the next level of R&D, marketing and advertisements. The shareholders had to be aware in advance of the merger and acquisitions of the two companies would lead to the increased valued of their company’s shares. Disney films were on their way to falling in the negative margins. Pixar has gained expert advice from Disney when it comes to advertising, Marketing and merchandising. Pixar can focus on its core strengths and not these areas. Disney is very well known for its marketing strategies toward children. 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 …show more content…
This is the leading multinational consumer products company, focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products. The merging of the company would increase the market power exploiting cost-based and revenue-based synergies. Joining forces with another enterprise can create innovation in manufacturing, distribution, design and research and development. Merging with another company provides an opportunity to increase market share and expand into new geographies and sectors. Merging presents the opportunity to team up with experts who bring their vision, management and technical know-how to the table. The two companies will have the ability to leverage management capabilities which are a skill and an asset. The two companies can expand in their research and development and produce new product brands for the home, medical, schools and other areas. They will be able to reach out to a whole different side of the cleaning