Merger, Acquisition, and International Strategies Essay

* For the corporation that has acquired another social club, merged with another play along, or been acquired by another company, foster the schema that led to the spinal fusion or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion. coca- pot caller history originated in 1886 when the curiosity of an Atlanta pharmacist, Dr. rear S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains ( coca poop History, 2013, para. 1). He generated flavored syrup, took it to his neighborhood pharmacy, where it was mixed with carbonated water and deemed excellent by those who sampled it (Coca the skinny History, 2013, para. 1). Dr. Pembertons partner and bookkeeper, Frank M. Robinson, is credited with naming the drinking CocaCola as well as shrewd the trademarked, distinct script, still used today (Coca Cola History, 2013, para. 1).The Coca-Cola phoner is not just an average beverage com pany. The Company owns/licenses and markets in excess of 500 nonalcoholic beverage products, mostly sparkling beverages but everywherely a assortment of still beverages, for instance waters, boosted waters (for example, Oasis, Powerade and Vitamin Water), juices and juice drinks (for example, Minute Maid and Five Alive), ready-to-drink teas and coffees, and aptitude and sports drinks (Coca Cola History, 2013, para. 5). Coca Cola most popular nonalcoholic sparkling beverage brands be Coca-Cola, nutrition Coke, Sprite, Fanta, Dr. Pepper and Schweppes which they market worldwide. Coca Cola Company has a market capitalization of $177.48 billion and is the largest company in the viands and Beverage sector (Coca Cola Company, 2013, para.1). Whether youre out shopping, working in the force or the gym, ZICO Pure Premium Coconut Water delivers the natural replenishment you require to re innovative. As of November, 2013 Coca-Cola Company and ZICO Beverages LLC announced that Coca Cola has acquired the out stand up ownership stake in ZICO (Coca Cola Acquires, 2013, para. 1).The merger go forth unlock more capability for ZICO including marketing, selling,manufacturing, innovation and distribution opport unities (Coca Cola Acquires, 2013, para. 1). Not only will this merger benefit ZICO, but the Coca Cola Company will gain a top piazza in one of the fastest rising beverage categories in the world. This final move concludes the relationship that began in 2009 when Coca-Colas Venturing and Emerging Brands (VEB) business unit first invested in ZICO. In 2012, the Coca Cola Company acquired a bulk stake in the brand. And earlier this year, ZICO took its home on the unique red Coca-Cola trucks to be circulated throughout the U.S. and Canada. When Coca Cola initially invested in ZICO, they did so because they saw it as a burgeoning exchange premium brand with the potential to be signifi baset leader in a high growth form (Coca Cola Acquires, 2013, para. 4). Over the pas t 4 year, Coca Cola has observed the coconut water exertion spear revenue impressively and gain household penetration.ZICO itself solidified its place as one of the autochthonic brands in the coconut water industry. With this acquisition, Coca Cola plans to modernize all characteristics of the consumer experience and intensify some(prenominal) rate and delivery to place ZICO at the top and continue even more growth inside the company. * 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 merger with and explain why this company would be a profitable target. Grocery shopping is more difficult and complex than ever before. directlys customers atomic number 18 more health mindful than customers of the past. Customers are more prone to buy effectiveness foods over the old-style foods their parents bought. Customers across the country bind access to everything from bizarre products to exclusive delivery services. Specialty market place stores stick grown in attractiveness to customers, but the main issue is that often specialty stores have restricted locations which in turn limits their r to each one to customers.Whole Foods merchandise and trader Joes are two specialty grocery stores who have increased locations to the hundreds while adhering to an unforeseen market standing for formerly untargeted market segment. Trader Joes contains over 340 stores in 9 states were they buy direct from suppliers whenever possible, mass hard to get the best hurts and then pass the savings on to the customer (Trader Joes, 2013, para. 4). Whole Foods Market is the worlds leader in natural and organic foods, with more than 360 stores in North America and the UnitedKingdom (Whole Food, 2013, para 2). Trader Joes and Whole Foods Market have managed to take original ideas and spread them throughout the nation to many disaccordent customers. Although they differ not only in the technique in which they decide to bring products to their customers but also in term of inventory management and supply chain organization. These two companies have become so made in my opinion, not by what they differ in but what they have most in common, which is their committal to their loyal customers, employees and undeniable quality in their products they sell.Through their loyalty to their customers and employees in addition to their irreplaceable value proportion, both companies have effectively succeeded to upturn the grocery industry and have forced outdated grocery stores and its customers to examine their descriptions of what institutes a positive customer experience. The merger of Trader Joes and Whole Foods Market would be lucrative to both companies since Whole Foods Market is now world-wide, they can vacate Trader Joes access to an international market. Whereas Trader Joes offers unbelievable quality, but has a brusque assortment of products, Whole Foods Market will help offer both a great assortment as well as excellence of products. * For the corporation that operates internationally, briefly evaluate its international business- aim strategy and international corporate-level strategy and make recommendations for improvement. Most customers have high hopes when buying a neat or a service. As a general rule, it seems that most customers want to pay a minuscule price for products with rather highly distinguished features.Because of these customers expectations, a number of firms, like Coca Cola, actively acquire in primary value chain activities and support functions that allow a firm to simultaneously handbag low salute and differentiation (Hitt, 2013, pg. 120), which is also called merged cost leadership/differentiation strategy. The reason Coca Cola uses this strategy is to efficiently create their products with some distinguish features. Efficient production is the source of keep on low costs whole di fferentiation is the source of creating unique value (Hitt, 2013, pg. 120). Coca Cola has successfully integrated cost leadership/differentiation strategy which has allowed them to adapt quickly to todays new technologies and to the rapid changes in todays society/cultures around the globe. The ultimate goals of Coca-Colas business strategy is to rise volume, develop their share of world-widenon-alcoholic ready-to-drink beverage sales, maximize the long-term cash flows and create economic-value-added by amend economic profit (Coca Cola Acquires, 2013, para 8). Corporate-level strategy specifies actions a firm takes to gain a agonistic advantage by selecting and managing a group of different businesses competing in different product markets (Hitt, 2013, pg. 164).Coca Cola Company has long been committed to the product development strategy in which case they do everything they can to become the best in their industry. They have moved into different geographic market such a Japan, Un ited Kingdom, ect., Coca Cola have acquired competitors such as ZICO as discussed above, and also they have bought bottleful suppliers to help grow the company even more. With all of these moves that Coca Cola have made over the years, this has allowed them to penetrate existing markets with new products due to their high brand awareness. You cant go but anywhere these days without seeing a Coca Cola product of some sort being advertised or sold.This strategy capitalizes Coca Colas favorable trademark reputation, Open Happiness. Coca Cola has developed great business and corporate level strategies but there is always style for improvement. We are living in a social media world and I would suggest that Coca Cola take full advantage of this new world of communicating with their customers. So many people circulate through social media and find new products through social media that developed a marketing strategy evolving social media will ultimately be a win-win strategy for any c ompany. * For the corporation that does not operate internationally, propose one business-level strategy and one corporate-level strategy and make recommendations for improvement.A differential strategy is an integrated set of actions taken to produce goods or services (at a acceptable cost) that customers perceive as being different in a way that is important to them (Hitt, 2013, pg. 115). I would suggest this differential strategy to Trader Joes because they currently are offering unique quality, private labels and outstanding pricing that other handed-down grocery stores are not offer. To have success with the differentiation strategy, Trade Joes must systematically upgrade differentiated features that their customers value and/or create new valuable features with any significant cost increases to the customers. Todo so, Trade Joes needs to constantly update and change their product lines. This means that the products that are not saleing get rid of them quickly.Look into the n ew developed and increasing fades that customers are looking into. And because differentiated products satisfies customers unique needs, Trader Joes will be able to charge premium prices which allows them to out price their competitors and earn above average returns. A multidomestic strategy is an international strategy in which the strategic and operating(a) decisions are decentralized to the strategic business unit in individual countries and regions for the purpose of allowing each unit the opportunity to tailor products to the local market (Hitt, 2013, pg. 235).I recommend a multidomestic international corporate level strategy for Trader Joes because this strategy is used with companies that have high local responsiveness but have low global integration. This strategy should maximize Trader Joes competitive response to the idiosyncratic requirements of each market it is in. The multidomestic strategy is most appropriate for use when the differences between the markets a company serves and the customers in them are significant (Hitt, 2013, pg. 235).ReferenceCoca Cola History. Retrieved November 29, 2013, fromhttp//www.worldofcoca-cola.com/coca-cola-facts/coca-cola-history/ Coca-Cola acquires ZICO, Retrieved November 29, 2013, fromhttp//m.newhope360.com/mergers-amp-acquisitions/coca-cola-acquires-zico Hitt, M.A., Ireland R., D., & Hoskisson, R.E. (2013). Strategic Management Concepts and cases Competiveness and globalization (10th ed.). Mason, OH South-Western Cengage Learning. Trader Joes Our Story, Retrieved November 29, 2013, from http//www.traderjoes.com/ almost/our-story.aspWhole Foods Market, Company Info, Retrieved November 29, 2013, from http//www.wholefoodsmarket.com/company-info