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Exercises from unit 12

The document outlines various business concepts related to mergers and acquisitions, including examples and strategic considerations for successful integration. It discusses the acquisition of Instagram by Facebook, the importance of planning and communication, and future business expansion strategies. Additionally, it highlights Eastman Property's plans to acquire a business equipment store and modernize it to meet market demands.

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Steph Gom
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
11 views

Exercises from unit 12

The document outlines various business concepts related to mergers and acquisitions, including examples and strategic considerations for successful integration. It discusses the acquisition of Instagram by Facebook, the importance of planning and communication, and future business expansion strategies. Additionally, it highlights Eastman Property's plans to acquire a business equipment store and modernize it to meet market demands.

Uploaded by

Steph Gom
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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UNAPEC

School of languages

Name Stephannie Gomez Date_24/11/2024

1. Upload the exercises from unit 12


1. merger

2. Joint
Venture,
Acqusition

3. Takeover
bid
4. Stake

One well-known merger is the acquisition of Instagram by Facebook in 2012. Instagram was
already growing rapidly as a photo-sharing app, while Facebook was expanding its social media
dominance. Both companies were successful before the acquisition, but the merger allowed
Facebook to tap into Instagram’s mobile user base and strengthen its position in social media.
Today, Instagram is one of the most profitable parts of Facebook (now Meta).
A.1 inadequate planning
2 due diligence done too quickly

3 lack of planning for post-merger integration period

B
a)To understand the company better or if you want it to operate as a separate subsidiary

b) So as not to lose customers or employees, or if there is a time-critical element

2. Whether you want to impose your own culture and way of operations on that company, or keep that company's own culture
separate

3 Are you going to appoint somebody from the company itself to run that division, or do you want to bring in new
management, either from the acquirer's own management, or from the outside?

C They met early before deal became public; determined the 'showstoppers' (what could stop the deal from being successful -
you could point out that this means the same thing as dealbreakers); made sure the approach was friendly; put together a team
of senior people from both sides; identified who was going to be running the firm; everyone knew what was happening; CEO
and Chairman deeply engaged in deal strategy.

D From what Prof. Moeller says, the key things are information and open communication, rather than welcome parties,
celebratory back-slapping, etc.
A
1Danone: producer of dairy products; L'Oreal: producer of beauty products; Colgate-Palmolive:
producer of toiletries; Unilever: producer of household cleaning agents; Cadbury Schweppes: producer
of soft drinks and confectionery; Estee Lauder: producer of cosmetics and perfumes

2 Danone - Stonyfield Yogurt; L'Oreal - Body Shop; Colgate-Palmolive -Tom's of Maine; Unilever - Ben
and Jerry's; Cadbury Schweppes - Green and Black's; Estee Lauder - Aveda

3 They are all smaller players, mostly in the same fields as the larger corporations that took them over.
They had a 'green' image, priding themselves on the quality or source of their products.

B
After checking the article, the answers to Exercise A are correct.
C
1true 2 true 3 false 4 false 5 true
D
1Better distribution, access to more markets, more cash
2 Factory closings, job losses, management changes
E
swallowed up, in partnership with, owned by, acquired by
F
1. Conglomerate 2 corporations 3 Multinational 4 partnership 5 subsidiary
A 1 will have paid
2 will have been
3 will be working
4 will be holding
5 be working
6 will be offering
7 will have launched
8 will be enjoying

 B
A stock-market crash next year
 I think it’s possible, but unlikely, because the global economy seems stable for now.
 Microsoft merging with Apple
 This is highly unlikely, as they are direct competitors with very different strategies.
 The majority of managers being women
 This is possible in the future, as companies are increasingly promoting gender equality.
 Brazil, Russia, China, and India becoming the major world economies
 It’s likely over the next few decades, as these countries have rapidly growing markets.
 The World Wide Web having serious problems
 It’s unlikely, but cyberattacks or other technical issues could pose risks.

 C
In my lifetime, we will develop artificial intelligence that surpasses human intelligence.
 Over the next decade, I believe more countries will invest heavily in renewable energy.
 Before long, my company will expand into international markets.
 By the end of this century, space tourism will be widely accessible.
 In the near future, automation will replace many repetitive tasks in workplaces.

1. A
For what reasons did Eastman Property buy the Highview group of hotels?
a. To expand its portfolio in the UK and take advantage of the growing budget hotel
market.
2. What are Susan Drake’s plans for Highview in the future?
a. To modernize the hotels and increase profitability by targeting budget-conscious
travelers.

B
Right, as I mentioned earlier

I'll outline these later in my presentation.

Right, why did we (buy)

The gap in the market

Right, I've told you why we've

We have a clear, realistic and ambitious strategy for

the Highview brand.

By that time, we'll have developed a portfolio

Highview will be the future

C
In discussing our strategic plans, I want to refer back to a few key points I made earlier. As I mentioned,
the demand for rooms is much greater than the supply, creating a clear opportunity. I’ll outline these
points in more detail later in my presentation, but first, let's ask ourselves: why did we buy Highview?
What about the market conditions? There are three main factors that influenced our decision: the gap in
the market, the current market conditions, and the opportunity for growth. In summary, I’ve explained
why we’ve acquired Highview, and we’re incredibly excited about the growth potential of the Highview
brand, as this is an ideal time to develop a budget hotel brand in the UK. Looking to the future, by that
time, we’ll have developed a portfolio of budget hotels, with Highview serving as the foundation for our
entry into this market. Highview will be the future, and it will lead the way. With that, is there anything
missing? Any questions or feedback?

D
"Good afternoon, everyone,

Today, I am excited to share with you an excellent opportunity for growth and innovation. Eastman
Property is planning to acquire a business equipment store located in a prime area of our city.

Why this store?


Right, as I mentioned earlier, there is a significant gap in the market for high-quality and affordable
business equipment. Companies, startups, and freelancers are constantly searching for reliable
solutions, and this store has the potential to become the go-to hub for all their equipment needs.

Our vision for the future:


By the end of next year, we will have launched an upgraded version of this store, including online
ordering, same-day delivery services, and customized packages for small and medium businesses. In
three years, we aim to transform it into a fully digitalized platform with a strong logistics network to
reach customers nationwide.

Development plans:
First, we will invest in modernizing the store, offering the latest office equipment and technology at
competitive prices. Next, we’ll expand the product line to include green and energy-efficient options,
aligning with sustainability trends. Additionally, we plan to host workshops and consultations for
entrepreneurs, positioning the store as not just a retailer but a partner in business growth.

By 2028, this store will have become a key player in the business solutions market, providing value
not only through its products but also by supporting the local business ecosystem.

Now, any questions? I’d love to hear your thoughts and discuss how this project aligns with our
shared vision for innovation and growth."

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