Watch this video In groups of 3 4 discuss answer the following In this video

Watch this video in groups of 3 4 discuss answer the

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Watch this video. In groups of 3-4, discuss / answer the following: In this video, what were the three reasons for a merger?What areas have to be merged in a business merger? What is the failure rate of mergers and acquisitions according to a study conducted by the Harvard Business Review? What do leaders needs to use as a basis to understand the impacts and implications of mergers and how to design the new organisation? What questions can they help answer? Reference: Raj Remesh. 13 January 2016. Mergers, Acquisitions & Failures. ONLINE: Activity Mergers and Acquisitions
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Classification of Mergers Horizontal mergers Vertical merger Conglomerate merger Concentric merger 21
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22 Reference: mjmfoodie. 11 February 2013. Episode 30C: Mergers. ONLINE: Play up to 2.25 Watch this video. In threes … Discuss and explain the difference between conglomerate mergers, horizontal mergers, and vertical mergers. Give an example of each. Activity Classification of Mergers
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Reasons for M & A’s Economies of scale Economies of scope Tax benefits Higher return on investment 23 Mergers and Acquisitions
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Reasons for acquisitions Increased market power Horizontal vs Vertical vs Related acquisitions Overcoming entry barriers Cross-border acquisitions 24 Activity : Watch the video. 10 years on, was the acquisition good for Tata Motors? Why? (conduct some internet research) Associated Press. 26 March 2008. Ford Sells Jaguar, Land Rover to Tata. ONLINE: Mergers and Acquisitions
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Reasons for acquisitions Cost of new product development and increased speed to market Lower risk compared to developing new products Increased diversification – Reshaping the firm’s competitive scope Learning and developing new capabilities 25 Mergers and Acquisitions
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26 Watch this video. What was the key failure in the AOL / Time Warner merger? Daily Fuel. 23 September 2016. Steve Case - Worst Merger Ever. ONLINE: . Activity Mergers and Acquisitions
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