Mergers and Acquisitions Case Study Example | Topics and Well Written Essays - 5000 words

Mergers and Acquisitions - Case Study Example The paper also deals with the resultant economies and advantages accruing out of the merger by studying the case of acquisition of another company by Hon Hai (Faxcom). While 'business strategy' represent the goal of the company to attain sustainable competitive advantage in one of the businesses of the company, 'corporate strategy' represents the objective of the company to manage multi-business activities to create corporate-wide advantage that will benefit each of the business the company owns and operates. The corporate strategy looks into the opportunities available to the company both internally and externally to enhance its competitive strengths and sustain its sales growth and profitability. A strategic analysis of any company thus includes assessing the strengths and weaknesses of the company based on the internal environment as well as threats and opportunities that the company is subjected to because of its relative positioning in the market and the industry. The main objective of any strategic analysis is to identify the ways in which the existing resources can be shared between the multiple business activities and identifying new resou rces, which will enhance the competitive strengths of the company. This may include the opportunities for mergers and acquisitions, which will provide the combined synergies and scale economies to the company for enhancing its competitive edge. Corporate mergers and acquisitions (M&A) have long received considerable attention from the corporate world, the investing public as well as the academicians and scholars. According to Thompson Financial Reports for the year 2005, the worldwide M&A deals was estimated at US $ 2.7 Trillion which has posted an increase of 38.4 percent from the total volume of US $ 2 Trillion for the year 2004. Cogut and Rodgers (2006) report that the increase in the Asian deals for the year 2005 increased by 64 percent over the last year and the dollar value was US $ 280 million for the period in the form of announced deals. A number of corporations in the international market have been