Merger, Acquisition, and International Strategies

Abstract

The current paper outlines peculiarities of mergers and acquisitions. It reveals international strategies by discussing strategies of two public companies. In addition, it covers the possible reasons explaining the company’s success from different segments of the industry. Another goal of the paper is to suggest the future of Harley Davidson performance. The paper demonstrates the role of acquisitions in the business development of Apple. It provides detailed information about business strategies of both corporations. In general, the discussion reveals the main factors, which helped both companies to obtain success. The paper emphasizes the role of mergers and acquisitions in the company’s performance regardless of its sphere of activity. 

 

Merger, Acquisition, and International Strategies 

Public corporations have always valued mergers and acquisitions as a vital part of the development and overall improvement of the connection with the surrounding world. The contemporary world of business has a wide range of public corporations that managed to become business leaders and continue developing into other stages of evolution. Every industry has an example of the successful public corporation, which managed to extend the boundaries of its activities due to mergers and acquisitions. With the help of mergers and acquisitions, a company gains new opportunity by increasing its activity, exploring the international arena, implementing its strategies abroad, and significantly raising its profits at the same time. Public corporations represent a part of business entities, which eventually decide to improve business by mergers or acquisitions. Nevertheless, there are many public corporations without any acquisitions. It is obvious that every company chooses its own strategy of the development.  

1. Apple Inc. is one of the most famous and powerful corporations, which develops due to numerous acquisitions. The company managed to win loyalty of millions of people in every country. However, Apple was originally established in the USA, which means that the company made a long way to success. Annually, Apple impresses the world with a range of innovative technologies, which prove that people are responsible for the technological evolution. The corporation has a long history, and its success depended on many factors. Apple had to overcome many obstacles in order to achieve its goals in profit, market share, and customer’s loyalty. Today, the corporation has many competitive advantages, which support its business. Acquisitions are one of the managing tools of the company’s success. New branches of the company help it in the development of new devices, which aim at covering its strategic plans. 

Apple’s history counts many acquisitions, and each of them has a significant meaning in its products and services. The first acquisition took place in 1988 when the company acquired Network Innovations, which contributed to the development of software. Apple started quickly developing its business due to acquisitions of other companies. Today, the corporation adheres to the strategy of rapid acquisition. In 2013, Apple made approximately fifteen acquisitions, which already have its reflection in the latest products. Apple’s global strategy aims at creating an appropriate innovational and technological background for the future. Acquisitions help the company to open new boundaries and use new tools in the development of products. Embark, Locationary, AlgoTrim comprise the broad list of acquisitions made by the company. Some acquisitions remain unknown and cannot become open to the public due to the company’s projects. Apple’s habit is to keep silent before loud presentation of a new product, which will impress the whole world. For example, the corporation has already acquired SnappyCam, which means that Apple plans to upgrade the system of taking photos. Despite the secrets hidden in the corporation, it is obvious that all acquisitions are parts of the strategic plan. Considering the size of the business, which Apple acquires, it is obvious that the corporation plans to make internal changes to its app-testing systems, products and services by means of acquisition (O’Brien, 2014). Apple receives benefit from every acquisition and processes aiming at meeting customer’s expectations. All such aspirations of the famous corporation create a number of competitive advantages, which help it to achieve strategic goals. 

2. Each public company has its way to its goals and history of success. It is impossible to design an optimal method for gaining success, which will be beneficial for the performance of every company. Economic or political consequences of business decisions are not the only problems of business development. It is impossible to build reliable management without risk of facing the same problems again. However, every company should strive to minimize the possible effects of difficulties on the way to achieving its goals. 

Nevertheless, success does not come only to those companies, which perform by means of continuous mergers and acquisitions. Harley Davidson is one of the outstanding companies, which obtained success due to high quality performance and rapid development without any acquisitions. It is interesting to know that the company managed to earn respect of millions of customers all over the world, though it continues operating only across the USA. Starting from 1903, Harley Davidson managed to overcome the difficulties of Great Depression and its consequences, which resulted in the manufacturing of low quality goods. Moreover, Harley Davidson survived the competition with Japanese competitors striving to remove it from the global market. A unique design and engine’s power helped the company obtain an outstanding level of performance along with its competitiveness. Despite a countless number of obstacles on the way to success, the company achieved its goals. Harley Davidson introduced not only a new product but also a new lifestyle, which became its peculiarity. People from the most remote corners of the world dream about a motorcycle produced by a legendary company. Harley Davidson proved that its motorcycles are reliable and safe for every customer’s life. The company has a strict system of quality control, which helps reduce the disadvantages in every product. 

It is necessary to admit that acquisitions continue representing significant techniques of the company’s development. Despite of the fact that Harley Davidson is a legendary company, it performs due to its original approach towards strategic performance. Every citizen depends on the development of both technologies and vehicles. Harley Davidson produces one of the most necessary and popular types of transport, which will always prevail. Moreover, the company’s products will always remain a luxury due to its uniqueness. Harley Davidson does not need additional recognition in order to obtain more loyalty of customers. However, it is possible to improve the company’s strength and competitiveness with the help of acquisition of other powerful business entities, for example BMW. It is one of the most famous companies all over the world, which produces cars and motorcycles. It is a German company, which has a great experience for competing in the international market. BMW strives for continuous success and aims at improving its activities. It has its own specific design, and it is willing to find methods to further evolution and development. BMW is a company that does not fear to overcome problems and difficulties on the way to success (Lyndon, 2012). Perfection and continuous innovational approach towards design formulate the essence of the company’s performance. According to the company’s strategy, it aims at enhancing its opportunities by means of endless possibilities. First, BMW can help Harley Davidson increase its market share due to the receiving a share in the European market and spread its products among undiscovered market segments. Second, BMW has a powerful and reliable scientific background appropriate for further development. Collaboration of two powerful companies could help establish a new business capable of gaining loyalty of millions of new customers. The unity of two companies will help enhance scientific development of new transport.  

3. Public corporations value every decision and are attentive to every factor of both external and internal environments. Apple Inc. takes care of its business and corporate culture in order to promote its stability and competitiveness. Through the combination of developments in business activity and corporate culture, Apple is always one-step forward of its competitors. Apple is one of the companies, which prevails in the market of technological innovations. It is difficult to say how a legendary company creates new products and succeeds to remain a primary leader in the market. Moreover, it is almost impossible to reveal the secrets of success but there are obvious techniques, which help Apple remain a leader. 

The business environment of the company is full of competitors. Nevertheless, Apple manages to develop high accommodation skills, which help adjust to the external environment. The diversity of acquisitions proves that the company succeeds to continue its technological evolution. It is difficult to maintain balance between the company’s brand, image, reputation, development, and competitive advantages at the same time. The main goal of the company is a continuous improvement of its products. Apple aims at remaining a primary leader capable of meeting requirements of the most demanding customers. It always inspires people to dream about future innovations and new technologies. Customers wait impatiently for the new product. All such facts prove that Apple chose an appropriate way to the success. The company’s principles include a continuous improvement of knowledge, dedicated work, and the focus on strategic goals. In addition, Apple has always followed the principle of improvement its current performance without turning to the new focus. It strives for evolution in its products and services, which is obvious to every customer. 

Corporate culture also formulates an essential part of the company’s activity. Apple’s employees are inspired and willing to make a difference and work for the benefits of the company. All employees perform in terms of flexible and reliable teamwork with appropriate division of duties and responsibilities. Apple works to create a comfortable working environment for the most effective performance of its employees. Employees, partners, and other stakeholders belonging to the corporation believe in the company and never fail to meet customer’s expectations. Apple motivates its subordinates to work effectively and continue excelling the competitor’s opportunities. Apple’s employees are willing to be a part of creating a new innovative product or service, which can excite and impress the minds of millions of people.

4. International collaboration sets the general principles of business activity and corporate strategies from the start of changes. In addition, when two companies start cooperating, it is important to develop the common principles of the performance. In such case, it is important to think about the most beneficial aspects of mutual support. Harley Davidson is powerful enough to ensure that its performance principles are reliable for further cooperation. However, the company needs to broaden its performance beyond the borders of the USA. It means that each acquisition should meet the specific terms of the cooperation. 

The contemporary position of Harley Davidson means that there is a need to accommodate it to future acquisition. Harley Davidson should work on optimization of its performance by following specific strategies of improvement (Baskin, 2013). First, the company needs to continue following its overall strategy with further introduction on the international arena. A business strategy of Harley Davidson should be centered on the regular improvement of a lifestyle and opportunities offered to customers. The company should prove customers that they need the lifestyle promoted by the company in order to correspond to the changing world. It will help refresh the company’s performance concepts. Acquisition also intends that the company needs to introduce new performance principles. In general, collaboration means that each party respects each other’s principles and rules of the operation. Moreover, acquisition also means that employees should work in a new direction supporting every intention of both companies. Employees should have a new plan of goals, which will motivate them to participate in the process of collaboration. 

In conclusion, it is important to emphasize that public companies have many opportunities, which can boost the speed of success achievement. It is necessary to use appropriate strategy from the beginning of the company’s performance. Two different companies discussed in the paper (Apple and Harley Davidson) helped reveal the information that all details are important in the process of acquisition. Harley Davidson decided to focus on the uniqueness of its products, while Apple managed to win respect and loyalty of millions of customers at the international level.

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May 15, 2019 in Research
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