MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES

How MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES work?

Description

Running Head: MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 1

Topic: Mergers, Acquisition, and International strategies

Name:
Course:
Instructor’s Name:
Date:

MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 2

Introduction
Mergers and acquisition strategies are important for organizations to Maximize on deals. It is
difficult to make deals concerning Mergers and Acquisition especially if it concerns
organizations that are doing it for the first time. While entering mergers or acquisition
strategies, organizations need to follow certain golden rules. The rules to follow include
examining the market condition of the target market. Such a practice ensures that the
company finds the optimum market player. There is need for organization to assess future
market opportunities. Customer reactions to the products of a certain company provide a
formidable basis of making strategic decisions on mergers and acquisitions. Further, there is
need to evaluate the level of potential of organization in acquisition and merger deals
(Brueller, Carmeli, & Drori, 2014).
Before Mergers and acquisition deals get the final sign, strategic management teams need to
develop proper integration documentations. Mergers and Acquisitions In simple terms refers
that by joining two companies, there is more value as opposed to when the entities are
separate. It refers to consolidation of companies’ interest in one. In relation to mergers, one
can state that mergers concerns with joining of two companies (Bena, & Li, 2014). Such
mergers come with a change in name or company organization. Mergers take place in
companies with equal size as well as structure.
Acquisition refers to one-company purchases the right of another company. The later
corporation ceases to exist and it sometime relates to change in names. Mergers and
acquisition are important strategic aims of various organizations. Such strategies take place
for various reasons. One of the reasons for such strategies is the acquisition of new markets.
They are used to increase the value of shareholders (Brueller et al 2014). Mergers and
acquisitions are important in cost reduction. Mergers and acquisition provide for tax savings
as well as diversification.



MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 3
Microsoft and Nokia
Microsoft is probably one of the largest multinational companies in the globe by market
capitalization. The company’s headquarters is at Redmond Washington. The company
concentrates in providing licenses, products and services related to the computing
technology. The company has diversified its products in the recent past now dealing in video
gaming. Microsoft’s reputation on mergers and acquisition provides huge literature. The
company has made over 184 acquisitions. It has mergers worth more than a billion dollars.
One of the largest acquisitions is the association between Microsoft and Nokia handset
manufacturing companies.
The merger between Microsoft and Nokia was to strengthen the company against Apple.
Nokia not only deals on products of paper, tires and even shoes. However, with an
Acquisition deal of $7 the company sold its right to Microsoft. In relation to the takeover,
Microsoft controls Nokia service as well as the business of its devices. Examples of Nokia
brands under Microsoft control include Lumia and Nokia Asha. The deal ensures Microsoft
control of developers and various testing stations. Microsoft now owns Nokia’s design teams,
employees, accessories as well as its supply chain. The business undertaking considers a 10-
year business deal. On the part of the deal, Nokia retains its networking and solution
divisions.
Part of the takeover agreement is that Microsoft will retain control IP deals with Third
parties. This agreement will make it possible for Microsoft to acquire employee talents and
abilities of Nokia. Lumia and Asha products now remain assets of Microsoft. Before the
organization launches it mobile products, it owns the production, marketing and supply of
Asha and Lumia brands. Nokia and Microsoft had previous interactions; however, they did
not meet their maximum potential.



MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 4
The inability of meeting this potential relates to their difference in terms of resources. They
had different production processes, tools as well as culture. Trade secrets of these companies
made it difficult for the organizations to work together (Bena, & Li, 2014). However, with
this takeover bid manufacturing of phone will be more efficient. The understanding of the
company considering Hardware and software features ensures effective knowledge transfer.
The interaction ensures that owners of Nokia devices will not experience sudden changes on
their device make up.
Nokia and Microsoft strategies
Nokia and Microsoft alliance relies on various strategies. One of the strategic goal of the
alliance is the provision of devices that rival Apple and Blackberry. The strategy is to provide
mobile devices to the market with Windows compatibility. Provision of Smartphone choices
is another strategy for the alliance. In these strategy individuals, using windows compatible
devices will have a chance to connect to Microsoft office platform (Kramer, 2014).
Individuals will have diverse choices of smart phones while at the same time enjoy seamless
connectivity with Microsoft office applications as well as office communication servers.
The other important strategy for the alliance between Nokia and Microsoft is the unification
of communication. Before the alliance, individuals wishing to interact with windows facilities
on the go had to have window mobile phones. However, with their partnership, individuals
are able to use mobile devices using the office communicator application (Kramer, 2014).
Individuals are now able to make unified communication with windows applications using
mobile devices. In relation to this strategy, Nokia will use Windows phone as the main
strategy. The part of the company will be innovation of imaging aspects within the platform.
The strategy provides for the need of Nokia to propagate the future of Windows phone. Nokia
will also provide necessary expertise on development of hardware and language support. This
strategy ensures that the device meets needs of various individuals irrespective of

MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 5
geographical location and segments. Nokia and Microsoft will collaborate fully towards
development of new products. Their integration will also concentrate on joint marketing
within diverse market segments. The alignment of knowledge and skills between these firms
further provides for the development of mobile products to meet future demands.
According to the agreement, Bing will be the search engine providers. With this capability,
customers have a wide range of products to utilize using new Bing’s features. Further
Microsoft ad center would provide basis for advertisements on the platform (Kramer, 2014).
The strategy incorporates Nokia mapping. Nokia maps will be the important aspect of the
Nokia and Microsoft integration. This integration will include Microsoft’s Bing and ad center
to provide a fantastic experience to customers. One part of the strategy Microsoft will create
applications that would run on windows Nokia phone. This strategy will assist in providing a
global ecosystem reach. Nokia Content as well as market store will be integrated to provide
more compelling services to consumers.
T- Mobile
T- Mobile is a wireless operator. It concentrates in providing Networks in the United States
of America. It is essential in providing data, messaging as well as Voice services in the USA.
It is among the top three companies in the provision of wireless services. With a customer
base of over 60 million, the company could merge with either Microsoft or Google. There has
been various attempts in purchasing the company but failed eventually. In the year 2009,
AT&T tried to purchase the organization by $39 billion stock purchase whose efforts failed.
This merger was not successful due to various legal hurdles and restriction by the government
T-Mobile, 2015).
The company has been effective in providing wireless services for the US market. On the
other side, it has been a contributor of network hotspots in various locations in the country.
One might not miss the services of the operator when they visit Starbucks restaurants. In such

MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 6
restaurants, the company has been a player in providing wireless services to customers. It is
also imperative to state that the corporation provides its services in Airlines, resorts as well as
in various hotels around the country (T-Mobile, 2015). The other strength of the organization
that would make it more profitable working with Microsoft is its range of products. The
company has for years; been a contributor on the Smartphone segment.
It has effective teams of developers, employees and production plants. The other strength of
the company lies on its marketing capabilities. T-Mobile marketing strategy relies on use of
commercials. The company has been advertising its products in the market through television
commercials (T-Mobile, 2015). Use of print media is another important marketing segment of
the company. This has been a success with the addition of organizational logo. Organizations
merging with T-mobile will enjoy a customer base of over 6o million across the United States
region.
International business and corporate Strategy of Microsoft
The international business strategy of the organization is to promote accessibility of
information technology devices through the globe. In fulfillment of this strategy, the
organization improves its profitability margin. Diversity and inclusion is another strategy for
the firm. The firm wishes to trade its products with individuals of diverse background
cultures and locations (Kramer, 2014). Building of collaborative relationship with various
stakeholders in the market is another important strategy. By such collaboration, the
organization is able to meet the needs of accessibility of information technology across
various classes of individuals.
Open and Transparent communication is an important strategy for the firm. The company is
open to provide information on accessibility of their products. Microsoft opens a door that
provides stakeholders room to make statements about their products. The culture of inclusion
remains the most important strategy of the organization. The organization allows the

MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 7
interaction of genius as well beginners in the information technology industry with ease.
Innovation is another business strategy that has improves the health of Microsoft.
The company has been concentrating in developing user-friendly products. It has also been
the goal of the organization to develop products utilizing research and development
approaches. According to the corporate strategy, the organization concentrates on its
communication channels. Concentrating on communication channels ensures teams within
the organization perform duties with ease (Kramer, 2014).
The other important feature on corporate structure of the firm relates on global expansion.
The company’s wish is to remain a global giant in the information technology field. Its goal
is to provide services to areas such as china and India. It is the goal of the organization to
promote innovative ideas in creating its products (Kramer, 2014). Microsoft attains this
aspect by acquiring talented workforce who drives the innovation agenda. The workplace has
become a global arena where individuals with diverse talents and of different races interact.
Business and Corporate level strategy T-Mobile US
T-mobile has been a great player in promoting the needs of employees. A leading player in
the provision of Information technology services, the company offers a wide range of
products for its customers. The firms develop Smartphone devices according to the needs of
customers. Its approach entails addition of features that satisfy needs of different category of
individuals. Cost leadership is another important feature of the organization. The company

differentiates its products from the rest of the players by reduced cost pricing strategy (T-
Mobile, 2015). With almost the same amount of dollars, one might purchase a device twice

less that of competitors with similar features.
The organization is effective in providing user-friendly platforms. The interfaces of its
communication channels allows for easy understandability. The most important selling point
for the organization is its offer of cheap data and wireless plans for customers According to

MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 8
corporate strategies T-mobile has the most talented individuals in the market. The company
utilizes services of consultants who assist in the management of workforce. The company has
a formidable payment structure for its employees. The rewards come with additional benefits.
On the other hand, the company values employee contribution (T-Mobile, 2015). The
benefits of working in the organization include accessibility of friendly work environment.
Communication is an important aspect in the management of firms. As a corporate strategy,
T- Mobile has an effective communication from top to the lowest level of operation.

MERGERS, ACQUISITION, AND INTERNATIONAL STRATEGIES 9

References

Brueller, N. N., Carmeli, A., & Drori, I. (2014). How Do Different Types Of Mergers And
Acquisitions Facilitate Strategic Agility?. California Management Review, 56(3), 39-
57.
Bena, J., & Li, K. (2014). Corporate Innovations and Mergers And Acquisitions. Journal Of
Finance, 69(5), 1923-1960.
Kramer, L. (2014). Microsoft Finance & The Journey To Digital Transformation. Financial
Executive, 30(4), 18-23.
T-Mobile Us, Inc. (2015). T-Mobile Us, Inc. Marketline Company Profile, 1-31.

Reviews

There are no reviews yet.

Only logged in customers who have purchased this product may leave a review.