Merging of Companies (Essay Sample)

Business Merging and Corporation
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Introduction The increased in the number of consumers, number of employees and managers believe that most companies especially the big multinationals to go above their traditional roles of creation, production, the packaging and selling both locally and internationally with an aim of making a profit. The upcoming of the social mandate investment products attests to the trend while the investors fully try to express their concern and make both of their ethical and social standards made known to most companies. The companies may include those that they prioritize and invest in a public corporation is a pool of group of people with the same idea and trend aimed at achieving specific business objectives. Some corporation acquires other companies so that they can operate in a common pool. Some corporations do not acquire other companies making them work independently. Corporations that operate internationally have a wide range market, and they become more likely to make more profit.Thesis statementThe article describes the two public corporations in and industry vividly. One that has acquired another company and operated internationally and the other one that does not have the history of mergers and the acquisitions and operates solely within the country of US are described in details. The companies that merged are Exxon and Mobil companies, Disney and Pixar. Mobil and Pixar did not merge.Merger acquisitions involves a number of different transactions that range from the purchase and sales, the concentration between alliances, corporations, undertakings and combined venture to the formation of different companies making sure that the independence of a business and managerial activities. Different companies or corporations come together with a common goal that they want to achieve. The corporate firms lay down specific objectives and reasons why they tended to form a joint pool. Company that produces oil such as Mobil can merge with another company such as Exxon that involves in the production of oil globally. The aim of merging between Mobil and Exxon is to create a common pool for success business idea. Exxon and Mobil merged because they produce the same product. The need by the two companies was to reduce the rate of competition among them is a factor to their coming together (Hammer & Champy, 1993). The need to explore a wide market for sales of their produce also led to merger acquisition. The merger acquisition between different contributes to faster growth between the merging firms. With reduced competition and exploration of a wider market the prices of commodities increased at a higher rate due merging. Faster growth of both Mobil and Exxon companies has increased due to merging. Merging, on the other hand, increases the economic gain of the firms due to economies of scope. Expansion within the merging firms is obviously expected to arise. One company or firm influences the other more positively. The need to share in their production method led to merging opportunity between Mobil and Exxon. Merged firm shares a lot and can contribute their profit for the start of other business related enterprises that creates gainful employment both internationally and locally. Demand for profit can be considered as another factor that leads to merging between Exxon Company and Mobil Company. Companies merge mostly to make more profit because the main reason for a business enterprise is to make a profit. If the firm makes adequate profit then it becomes very rare for its collapse. Constant profit making leads to higher expansion of the firm and the entire business. Therefore, merging of two firms contributes to higher profit making between the merged firms. Due to merger acquisition, a larger firm always gets the best access to the capital market leading to lower cost of the capital. Larger firms obviously have higher capital investment making them get the highest profit and best capital investment. A lot of financial benefits are experienced by the larger firms as compared to smaller firms. The implication is that the bigger the firm in the merges the greater the financial benefits. The smaller the firm in the merge the smaller the financial benefit. Merging contributes uplifting of smaller companies to bigger companies. The smaller companies get some bonus benefits from, the larger companies leading to a better financial and profit balance between the mergers. The need for expansion of firms contributes to merging. Market connection has been considered as the main aim for merging. Merge acquisition has a lot of gains that a firm experiences at times when it applies for the superior managerial skills to the targets business. The gains that affirm experiences are paramount as it contributes greatly to the success of the merged firms. Considering the merger between Mobil Company and Exxon Company, the Mobil Company may gain a lot in terms of managerial skills. The managerial department of one company can share most of the top strategies and methods that lead to successful management. Through acquisition and exchange management tips, a firm or a company is bound to expand at a higher rate. The successful company merging with partially successful company leads to higher leads to faster expansion of either of the companies (Taulli, 2002). The theory of disturbance shows that merge acquisitions are always caused by a disturbance within the economy. The economic disturbance causes transitions in the expectation of a person and leads to increase in the level of uncertainty. Implication is that the change in the ordering of the expectations of a person. All these compel the former non-owners of the assets to place greater values on these assets more than their owners resulting to merger acquisition wave. The firms are made able cross-subsidize their products due to merger acquisitions. The competition becomes limited with merger acquisition because the firms or the companies act as one corporate sector. The existence of competition between mergers become very strong resulting to higher market power (Taulli, 2002).Therefore, many corporate merge with an intention of increasing their input as a profit and output sale. The merger is aimed at achieving some three important goals namely financial goal, operational goal and managerial goals. The merger acquisition advisor gives the march marking service by bringing both buyers and sellers together for the success of a business. The merge is a better choice for companies or firms that are directed towards making a lot of profit, firms which require a wide range of market and those which need a large range of expansion. Profitable company that suits merging with other corporations that have not involved in merging is the Mobil Company. Pixar Company is recommended for a corporation that has not involved in merging because it will contribute to greater marketing the produced products globally. The Pixar Company can ensure that the outcome of the corporation that has not involved in merging comes true. Products that have been produced can be marketed through various methods of marketing leading to faster growth of the non-merge corporations. If the Pixar Company had involved in the merging before then the corporation that had not involved in merging would tend to explain the benefits of merging. The managerial staff of the company needs to be well versed with the great importance of merging (Taulli, 2002). Through all these, several positive outcomes are bound to be realized by the corporation company that has not involved in merging. Increase in making of profit by the firm that has not involved in merging can happen when a company merges with the marketing company. The management system can be made so competitive for the success of the business. Increase in payment of the employees will increase due to increased profit as a result of increased in marketing. Marketing company will improve the rate of input and output contributing to higher profit levels and low-risk rates. Due to merger acquisition between Pixar Company and Mobil Company, reasonable financial crisis can rarely be expected within the company floor. Merging will contribute to higher profit, well planned managerial team that is the goal oriented and goal driven. It can also contribute to wider expansion of the company by positively selling the best it. Pixar will ensure provisions of timely comprehensive control information at every given stage during the implementation of important success factors of the Mobil. Selling of the final projects by the company can be made easily due to merging with the marketing firm. The communications and consultation are bound to exist between the existing parties. The detailed plans of actions can be made possible by the implementation of this company that will enable proper merging. Combination of the top management support for both companies creates willingness of the top management to provide the necessary resource and the authority. Through the relation of the two companies, the company can create well defined goals and directions for the success of the above name company that has never involved in merging. Relation of the management team between the two companies can contribute greatly for the success of the production strategies of the firm. The company will be able to relate some factors related to the external environment such as competitors, clients, economic environment and political environment. Performance of the company can be improved through borrowing most ideas from the company that had already merged (Hammer & Champy, 1993). The problems related to unexpected crisis and deviation from the plan can be provided by the company, and this creates a better functionality off the company. Input and output will also be able to improve massively. The company can adopt a lot from the related comp...