Market Entry Strategy

Market Entry Strategy Green International MERGERS AND ACQUISITION - PLAN . The hotel named Green international ltd ' Is started in Greece and the mode of entry for the company to go in the international market is planned and researched and investigated to be a merger and an acquisition . In general the reasons for a merger and an acquisition would remain the same irrespective of any particular industry including the hotel business . For the specifics of the hotel industry the following slides provide a reason for the concepts existence

WHAT IS MERGERS AND ACQUISITION The key principle behind a

merger and an acquisition is to make one plus one equal to three It is always better to work with two companies then working as two separate companies When one firm takes over another firm and solely becomes the owner of the new entity , the purchase is termed as an acquisition The target company stops to exists and the buyer swallows the business and the buyers stocks are now going to be traded afresh When two companies which mostly are of the same size agree to function and operate as a single firm , the deal is termed as a merger MERGERS AND ACQUISITION - REASON / ADVANTAGES FOR CHOOSING THIS STRATEGY To expand its business operations To generate synergy To share business risk To acquire managerial know-how , technological know-how To gain infrastructural benefit To increase the market size , market revenue and the market share To increase the managerial specialization by adopting the concept of economies of scale To acquire and sell complementary products by the process of cross-selling Reduce their tax liability To value and combine the scarce resources MERGERS AND ACQUISITION - REASON / ADVANTAGES FOR CHOOSING THIS STRATEGY To reduce the competition in the market To reduce on the cost thereby generating economies of scale To acquire management control of a smaller firm to gain spin of recognition To assess and enhance effective control on the assets of the firm which was not able to manage its management practices To survive in the arena of growing businesses It helps minimize competition if the rival company is taken over or merged Improve the reach of the market and the firms visibility and existence in the industry It seldom may lead to diseconomies of scale in cases where the company grows bigger and more costs are incurred in the process There could arise clashes in the culture of the businesses or the two firms which in turn would affect the efficiency and effectiveness of the merger and acquisition Redundancy of workers at certain levels of management would lead to de-motivation The two firms may not be able to manage their resources properly which may lead to conflicts and goal incompatibility The merger may last for a short term basis which in turn will hamper the target company There could be chances of generating lack of trust which might lead to divorce of the two companies Competition will be reduced which will give some space for the firms to...