Merger, Acquisition, and International Strategies Research Paper - 5

Merger, Acquisition, and International Strategies - Research Paper Example Similarly, mergers and acquisitions guide smaller and newer companies into adapting in the advanced industries that have larger companies often manipulating the market conditions of such industries. Merger and acquisitions is a restructure approach in the management of enterprises within an industry. In successful mergers, the companies involved employ techniques that enable them to reorganize their corporate and internal strategies to suit the value of the operations. Distinctively, the growth of globalization has largely influenced the need for businesses to embrace mergers and acquisition as a way to fit into the competitive international markets. Many companies have inadequate resources that enable them to venture into overseas markets, hence limiting their potential output and income respectively. In this case study, therefore, the paper will explain the role of mergers and acquisitions towards the growth of a brand in international markets. The energy industry is a mainstream contributor to the growth of any economy in the world. Many companies that deal with this lucrative commodity are often engaged in a series of adjustment processes that guarantee the survival of such companies in this competitive industry. Due to the increasing global pressure towards internationalization of various business entities, the merger and acquisition processes came into the picture to provide a stable supply of energy for the expansion of various business units. Therefore, between the year 1998 and the year 2001, major energy mergers were commissioned to oversee the improvement of efficiency in the provision of energy as per the requirements of the internationalized enterprises. The Exxon Mobil is a combination that involved the purchase of Mobil by Exxon in the year 1998. The strategy employed in this merger was the horizontal strategy that involved the acquisition of a foreign oil