GLOBAL MERGERS

Global Mergers and International HRM

[Name of the Institute]

Global Mergers and International HRM

Introduction

Mergers and acquisitions are applied in order to gain a competitive advantage. There are several reasons that the M & A business such as improving market share, market entry, new product development to research and design, etc. The main advantage of mergers and acquisitions that the acquirer contributes the merger or takeover considered a profitable investment.

“It would appear that chaos rules in the world of mergers and acquisitions. But ouranalysis reveals that these trends are not a matter of happenstance. On the contrarywhen we take a deeper look, it becomes evident that industry consolidation conformsto a set of laws” (AT Kearney, Merger Endgames 2002)

Including the courses to the facts and figures, while a company merged earlier in the previous era the issues are important to learn. Mergers and acquisitions allow companies to pool assets for value creation. To give them the greater control and increased value for the company, mergers and acquisitions require consolidation of activities in a particular industry. The success of M & A depends on how well a company combines the global activities in the market. Tactical interest is the M & A in the form of seeking short-term profits in order to acquire a company with the aim of increasing its value and then sell at a higher price. The common factor in the cases, the stimulus, the value of the acquired company (Wu, 2009, pp. 59-86).

The mergers will add value by increasing competitiveness and provide additional capabilities. Often in the race for negotiation companies tend to overestimate the real benefits of the agreement (Krotman 2009, pp. 58-60). You then have to compete more often. The strategic logic is more easily achieved if the two companies have similar business foundations and the objectives themselves (Karl, 2008, pp. 56-62).. This allows economies of scale in several stages, such as R & D, production, sales, marketing and sales (Krotman, 2009, pp. 58-60). . This is known as performance improvements. The principle of respect for the strategic logic of integration of the acquisition is based on performance improvements. These gains are the main objectives of the companies to implement acquisition strategies (Marks, 1998, pp. 78-85).

Debate over global mega-mergers

Each picture has two sides, one good and one bad. This means that everything has some advantages and disadvantages. Just as the benefits of mergers, there are some disadvantages of mergers and acquisitions. The only downside is that if the result of the merger market share is significant, then the other party may lead to a sharp rise in energy prices. The company has the low turnout may face discrimination in relation to power. There can be many disadvantages if the company has a monopoly of power. Because of the mega-mergers, there is a possibility of loss of jobs. This means that when two companies merge for business growth, the leader decides that keep most people. This leads to job losses in the event of mergers and acquisitions. Another drawback of mergers and acquisitions is that it reduces the ...