Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Mergers And Acquisitions Cost Cutting - 1,163 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

... corporation considers are particular business areas, products and services desired. The buying corporation does research to find out all about the target company. This research is done by making telephone contact, correspondence and by speaking with third parties (notes).

If things are looking good, a meeting between the two corporations will be arranged. Next comes acquisition planning, the fourth step in the process. In planning, top management must consider location, price range, profitability, return on capital employee, and image compatibility. A very important factor taken into consideration at this time is the scope of integration. It is important to examine this factor because it could lead to failure.

Step five is valuing and evaluation. This involves setting a value and evaluating the potential company. The value is determined by examining the historical nature of accounts, assets, and by referring to the So Hayward Quarterly Index. Step 6 is when the negotiating begins. There are thoughts of sources and methods of funding the business such as internal and external sources of funds.

Step 7, Due Diligence, refers to the management of the acquisition. At this point there is a space between the two firms while the overall purchase plan is reviewed. The most important step may very well be step 8, actively managing the acquisition. This involves the purchase and sale contract, but it also involves the actions plan. Decisions have to be made about how the company is to be run. Topics such as authority, responsibilities, and roles must all be defined.

This, along with the implementation of any new ways, will require extensive communication. A major problem that must be addressed at this point is integrating corporate systems, structures, and cultures. This is one of the most complex challenges, especially when dealing with cross-cultural mergers. Problems arise because, "not everyone wants to adopt someone else's way of doing business. And when you start to form a third culture out of the fabric two equally strong companies, the task is enormous, especially if your trying to maintain high performance in the marketplace at the same time" (Leonard). To deal with any problems, special task-oriented teams are organized who will specialize in this area.

Step 9 deals with financing and finally, the tenth and final step in the successful acquisition process is the actual implementation of your plan as a company. When the steps are followed and everything goes as planned, the result is a successful merger. There will be good operating and market synergy between the buyer and seller, and the newly merged companies will understand the importance of sharing eachother's capital, markets, and technology. After researching mergers and acquisitions, I have come to understand the importance of these two growth strategies. Today's business environment is being dominated by mergers and fast growth. In order be a player in the highly competitive markets, expansion of firms is necessary.

It is almost impossible to achieve high profitability all alone. This growth is achieved through new product development, acquisition of new plants and more machinery, and business development activities. Firms are merging due to pressures from their competitors. Corporations today must understand the financial and technological difficulties as well as the complex problems associated with the actual interaction of peoples and plans when participating in mergers, and they must strive to execute all of their plans to their maximum potential. CASE STUDY Renault and Nissan join forces to achieve profitable growth for both companies On Saturday, March 27 th, it was announced that Renault, a French car manufacturer, would be teaming up with Nissan Motor Corporation in a $ 5. 4 billion deal that created the world's fourth largest automaker.

This deal gives Renault a 36. 8 % stake in Nissan, a company that has been struggling financially for the past few years. "The $ 5. 4 billion deal between Renault and Nissan hands over effective control to the French automaker in exchange for badly needed cash" (Wwodruf). There are other agreements within the contract, but they will not be discussed in much detail at this time. Both of these corporations plan on benefiting from the merger. This alliance will resolve Nissan's very substantial financial problems. Renault will be given the opportunity to join the automotive big leagues at a time of global expansion in the auto industry (Marks). Market expansion will be possible because Nissan is strong in Japan, Taiwan, Thailand and North America- markets where Renault has no presence.

On the other hand, Renault is one of the top marketers in Europe, while Nissan is just a small player. Nissan is strong in trucks and luxury cars, and Renault is strong in small, mass-market cars. Even though the deal sounds great, it does not come risk-free. Many skeptics believe that the teaming up of two struggling automakers will not result in profitability or flourishing.

Renault is taking a risk because it has just recently begun being profitable, and the company may not yet be stable or strong enough to save Nissan from its great debts. Just as any proper merger should have, Renault-Nissan has already disclosed some of their strategies for achieving a smooth merger. Renault is counting on its expertise in cost-cutting to turn Nissan around. This expert team is going to be led by Renault executive VP Carlos Ghosn. The rest of the team consists of 40 Renault managers who will be responsible for helping Nissan improve efficiency and reduce spending (Marks). The new joint venture will be led by a global alliance committee of top managers from each company.

Since there will be a clash of cultures, Ghosn's task may not be easy. His techniques of cost cutting are exactly what Japan is against. Many other teams have been formed as well. Eleven Cross Company Teams will be assigned the task of promoting all possible synergies to be implemented by each of the partners (Renault 2). Each team will be in charge of something different, from product planning and strategy to purchasing and logistics. As a result of the merger between Renault and Nissan, they estimate they will save $ 3. 3 billion in 3 years.

Sharing purchasing costs and auto platforms will be used to achieve this. Renault-Nissan will now operate together in hopes of competing in a globally diversified, competitive automotive market. Works Cited Eiteman, David K. Multinational Business Finance. Addison-Wolsey, Co: Reading, MA, 1998. Pp. 480 - 496.

Hirsch, Jared Brett. Mergers and Acquisitions: A Different Perspective. Kimball Publishing: New City, NY; 1996. Pp. 13 - 15, 18, 19, 31 - 56.

Leonard, Daniel R. Global Markets. " Mergers and Acquisitions. " Shermerhorn Johnson Company: New York City, NY; 1997. Marks, B. "Global Automotive Report. " Detroit News. 1999. web (28 Mar. 1999).

Mckinney, Michaels. " A guide to mergers and acquisitions. " 1998. web (29 Mar. 1999). Renault. "The Agreement. " 1999. web (28 Mar 1999).

Woodruff, David. Deals. "Nissan, Renault in $ 5. 4 B Deal. " CNNFN. 1999. web (28 Mar 1999). Bibliography:


Free research essays on topics related to: cost cutting, 4 billion, mergers and acquisitions, renault, mar 1999

Research essay sample on Mergers And Acquisitions Cost Cutting

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com