Critically Debate The Arguments For And Against Global Mega-Mergers Essay

Critically Debate The Arguments For And Against Global Mega-Mergers - Essay Example With the growth in the competition and with the rising trend of globalisation, it has been found that most of the companies are merging together in order to avail several advantages. These mergers are the result of the strategy to become world market leader in certain sector or at least to reach a critical mass. There is significant growth in the international mergers and acquisitions that are taking place across the boundaries of any particular country (Einy & et. al., 1995). Arguments For and Against Global Mega-Mergers The international mergers and acquisitions are conducted for the purpose of gaining strategic benefits in the market of a particular country. Salent & et. al. (1983) stated the fact that when an industry is oligopolistic with identical goods and cournot competition along with constant marginal cost and linear demand then in such circumstances a merger tends not to be gainful unless and until it encompasses more than 80 percent of the firm (Salant & et. al., 1983). M ergers in case of Cournot oligopoly is recognised to be quite lucrative if both the merging companies possess asymmetric information regarding market demand (Das & Sengupta, 2001). It has been argued that the cross border M&A is the key to flow of foreign direct investment. Greater share of the total merger tasks tend to be performed largely across international borders (Clarke, 1983). International mergers & acquisitions are a trend nowadays. Most of the top managements of the companies argue the fact that international mergers lead to benefits of scale, high shareholders’ value, access to new markets as well as low overheads. However, it can also be argued that mergers lead to cultural differences, in terms of organisation culture along with national culture as well which is considered to be the biggest challenge in such integration. It has been noted that successful integration of an international merger is quite a long method which is assisted by a sense of equality and c ommon management goals, programs and tasks (Olie, 2002). The new form created because of the merger activity is anticipated to possess increased market share that may facilitate to minimise competition. Although the minimisation in the completion is harmful for the public interest, it can assist the firm in earning more profits (Otchere & Mustopo, 2006). Mergers can assist the firms in dealing with the threats of multinationals and struggle on an international scale. It has also been argued that mergers might permit high investment in Research & Development (R&D) since the new firm is expected to garner significant profits. This will result in better quality of goods for the consumers. Mergers have been found to be quite advantageous in a deteriorating industry where the firms are facing problems to stay buoyant. It has been argued that in case of conglomerate mergers, two firms belonging to distinct industry merge together. Therefore, one of the benefits received in such mergers is sharing of knowledge that is generally applicable to distinct industry (Gal-Or, 1988). The arguments against global mega-mergers is that when

Assignment, and writing 2 essays based on 3 readings Coursework

Assignment, and writing 2 essays based on 3 readings - Coursework Example trend or phenomenon. Although the readings, â€Å"Cultural Valorization & African American Literary History† (Corse & Griffin) and â€Å"The Vietnam Veteran’s Memorial† (Wagner-Pacific & Schwartz) discuss different social and cultural phenomenon, we see clear examples of how the concept of â€Å"the sacred† is similar to the concept of â€Å"sacralization† specifically with regard to social unity and a social movement from deeming something socially insignificant to socially indispensable. Both readings also demonstrate how Durkheim’s idea of â€Å"the sacred† differs from the ‘sacredness’ so to speak, of Hurston’s novel, Their Eyes Were Watching God and The Vietnam War Memorial in that both cultural phenomenon cannot be compartmentalized into Durkheim’s simple definition of what deems something sacred. Nevertheless both phenomenon are in fact â€Å"sacred† in society and add another dimension to Durkh eim’s concept. All of the fore mentioned readings include a societal and cultural happening, which at one point in history was considered insignificant and undervalued but through a social, academic, political etc. unity and validity placed upon the phenomenon; there have been distinct and necessary alterations in societal thought as well as accomplishments with regards to the phenomenon at hand. In â€Å"Cultural Valorization & African American Literary History† Corse and Griffin extensively discuss the historical and ideological transformation of the Western Literary Canon and the creation of the African-American literary canon with regards to African-American literature and specifically Zora Neal Hurston’s novel, Their Eyes Were Watching God. When Hurston’s novel was first reviewed, it was considered â€Å"simple and unpretentious†, â€Å"unsuccessful†, not a literary work that would ever â€Å"move into serious fiction† and