Going Global

 

Your company recently went through a global merger or acquisition in which at least one of the parties involved was from one of the following countries (Saudi Arabia, Egypt, or Cuba). You need to create a PowerPoint presentation that you will present to the Board to describe the rationale behind the merger or acquisition.

Instructions:

Identify if the merger or acquisition was vertical or horizontal in nature.

Compare and contrast some advantages and disadvantages to pursuing the merger as opposed to pursuing an association.

What are some of the social implications of doing business with this firm (human rights, social responsibility, and etcetera)?

Sample Solution

Slide 1: Title Slide

  • Title: Global Merger/Acquisition Analysis
  • Your Name
  • Date

Slide 2: Introduction

  • Briefly introduce the merger or acquisition, including the companies involved, the type of transaction (vertical or horizontal), and the rationale behind the deal.

Example:

  • Horizontal Merger: Our company, [Your Company Name], recently merged with [Partner Company Name], a leading [Industry] company in [Country]. This merger was driven by a desire to create a stronger market presence, achieve economies of scale, and enhance our product offerings.

Slide 3: Advantages of Merger vs. Association

  • Merger Advantages:
    • Increased market share
    • Synergies and cost savings
    • Enhanced competitive position
  • Association Advantages:
    • Reduced risk
    • Flexibility
    • Preservation of autonomy

Example:

  • Merger Advantage: By merging with [Partner Company Name], we were able to significantly increase our market share in [Region] and gain access to new customer segments.
  • Association Advantage: An association would have allowed us to explore opportunities without the same level of commitment and risk as a full merger.

Slide 4: Social Implications

  • Human rights: Discuss any potential human rights concerns associated with doing business in the partner country.
  • Social responsibility: Highlight the company’s commitment to social responsibility and any initiatives undertaken to address social issues in the region.
  • Cultural sensitivity: Discuss the importance of understanding and respecting cultural differences in the partner country.

Example:

  • Human rights: In Saudi Arabia, it is important to be aware of the country’s labor laws and human rights record. We have implemented measures to ensure that our operations comply with international standards.
  • Social responsibility: We have partnered with local organizations to support education and community development initiatives in [Country].

Slide 5: Conclusion

  • Summarize the key points discussed in the presentation.
  • Reiterate the rationale behind the merger or acquisition.
  • Emphasize the potential benefits and challenges associated with the deal.

Remember to:

  • Use clear and concise language.
  • Support your points with evidence and examples.
  • Tailor the presentation to your specific audience and their interests.
  • Use visuals (charts, graphs, images) to enhance the presentation.

By following these guidelines, you can create a compelling and informative presentation that effectively communicates the rationale behind your company’s global merger or acquisition.

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