BLACK & DECKER Black & Decker Corporation (B&D) tried to run a diversification strategy. During the 1980’s Black and Decker had established themselves as a leader in the power tool industry. However, they had a feeling that that the market for such tools was maturing to the point where expansion within the industry would provide little or no additional revenues so they decided to diversify. Black and Decker began their expansion operation by acquiring General Electric’s housewares business
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In a general sense, mergers and takeovers (or acquisitions) are very similar corporate actions - they combine two previously separate firms into a single legal entity. Significant operational advantages can be obtained when two firms are combined and, in fact, the goal of most mergers and acquisitions is to improve company performance and shareholder value over the long-term. The motivation to pursue a merger or acquisition can be considerable; a company that combines itself with another can experience
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POISON PILL STRATEGIES Poison pill strategies are defensive tactics that allow companies to thwart hostile takeover bids from other companies. Many companies may find themselves unprepared when facing such bids. By adopting a poison pill strategy, a company can be somewhat reassured that acquiring companies will approach its board of directors, not the shareholders. Poison pill strategies are also known as shareholders' protection rights plans. HISTORY During the late 1950s and early 1960s, several
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Maple Leaf Foods has recently lost a noticeable market share amidst stiff competition. Problems contributing to the loss in the internal environment include deficiencies in the value creating activities. Some core issues for MLF are low morale among employees, an unfocused brand message, and a lack of proper responsibility and accountability in profit-making. Lastly, Maple Leaf has so many brands that the company is competing with itself in some instances. They are differentiating its product labels
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acted fast to reorganize the company. Furthermore, he replaced Heineken's outmoded style of management and built collective action with a corporate culture based on individual responsibility and innovation (Davidson, 2009). In addition, since each merger or acquisition is a unique transformational process, the role of transformational leadership is essential. In transformational leadership leaders or managers should know the importance of trust among the team players and the leader of the group. The
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Why do mergers and acquisition often lead to the consolidation of positions and reductions in work force? When two companies merge the reason usually is to improve the combined profile of both entities or to increase the company stock. When two companies in the same competitive industry merge it is like putting together two incomplete car collections. There may be cars in one collection that are not in the other collection. So you dispose of the cars that are duplicated and you end up with one
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British Journal of Management, Vol. 9, 91-114 (1998) Attributes of Successful and Unsuccessful Acquisitions of US Firms^ Michael Hitt,* Jeffrey Harrison,^ R. Duane Ireland* arid Aleta Best§ *Lowry Mays College of Business Administration, Texas A&M University, College Station, TX 77843-4221, •College of Business Administration, University of Central Florida, Orlando, FL 32816, 'Hankamer School of Business, Baylor University, Waco, TX 76798-8004, and ^College of Business and Industry, University
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Case Background Paint-Pen, Inc. is a company that manufactures and distributes liquid paint dispensed in ball-point tubes. The product is sold under the registered trademarks “Paint-Pen” and “Liquid Embroidery”. Aside from bearing the Good Housekeeping Seal of Approval (awarded in 1973), Paint-Pen distributes its products under the home party plan with exclusive franchise agreements with its distributors. On April 19, 1997, the company was offered for sale to Mr. Warren G. Hamer. Provided with
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company that grew through aggressive markets acquisitions became one of the leader worldwide in cement industry. Over time, potential for growth has shown to be on the developing markets with a CAGR of 5.5% versus 0.3% in developed countries. In a merger and acquisition dynamic where Argentina through its growth potential was favored by many foreign companies, Holcim through a progressive process acquired the majority stake in Cocemar, and merged it with Minetti, giving birth to a new Player in Argentina
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This paper presents clinically-based studies of two acquisitions that received very different stock market reactions at announcementCone positive and one negative. Despite the differing market reactions, we find that, ultimately, neither acquisition created value overall. In exploring the reasons for the acquisition outcomes, we rely primarily on interviews with managers and on internally generated performance data. We compare the results of these analyses to those from analyses of post-acquisition
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