Preview

Bus 508 Research Paper

Powerful Essays
Open Document
Open Document
1404 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bus 508 Research Paper
ASSIGNMENT 2: Mergers and Acquisition

Course title: Bus 508-Contemporary Business

Use the Internet to research a publicly traded company in the United States that has undergone a merger or acquisition within the last three (3) years. Take note of the circumstances surrounding the merger or acquisition. I. Examine the circumstances that resulted in the merger or acquisition for the selected company. Speculate on two (2) reasons why the resulting decision to merge or to acquire / be acquired was made.

Public traded company in United States that has undergone a merger within the last three years was the merger between American Airlines and US Airways Group on December 9, 2013. The merged airline inherits
…show more content…
The airline provides the following list of things it has done for travelers since January. Two examples of those effects now that the merger has been completed are;
The opportunity to earn and redeem AA advantage miles when flying on American or US Airways, with all eligible travel on either airline counting toward elite status qualification in the program of your choice.
Select reciprocal benefits for elite status members when flying airline, including first and business class check-in, complimentary checked bags, and priority security and boarding (Carey&Nicas, 2013).
III. Examine the organizational structure that has resulted from the merger or acquisition. Analyze the major differences between the resulting company and the original two (2)

You May Also Find These Documents Helpful

  • Better Essays

    American Airlines has been suffering for many years. The company has suffered more losses than profits. Jobs have been cut; benefits have been scaled back, and the pilots of American Airlines are paid a lot lower salaries than their competitors. Many of them have been furloughed. All of these and many other factors have contributed to American deciding to create the world largest airlines with US Airways. In this essay I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger.…

    • 1366 Words
    • 4 Pages
    Better Essays
  • Better Essays

    When two or more companies are combined, they form a merger. This is an effective corporate strategy. All the capabilities of companies forming the mergers are combined to serve as a unique motivation for the venture. Other motivational factors for them are to acquire greater market share and enhance competition. In order to improve a business’s performance, mergers are typically formed.…

    • 999 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    However at the end of the day, AA as an organization enjoyed the positive impact of merging with U.S Airways by having a reorganized business and maximized value for all economic stakeholders. The change resulted in a better fuel burn, saved labor cost and savings on repair and maintenance.…

    • 1821 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiar?horizontal, vertical, or conglomerate and explain why you made that choice.…

    • 433 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Euro takeover

    • 474 Words
    • 2 Pages

    • Bidders (Raider, LBO, W.K.) ( , , ) – What is your walkway price, i.e. highest price willing to pay? • Banks – Credit rating, interest rate – Lending limit & Structure Credit Analysis • Evaluate post‐merger credit worthiness – Statutory vs. subsidiary merger – Post merger cash flow • How much synergy to include? How much synergy to include? – Post merger debt level 2 Capital Structure • Senior Debt – – – – Term loans & Revolving credit…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiar–horizontal, vertical, or conglomerate–and explain why you made that choice.…

    • 1894 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Vertical Mergers

    • 660 Words
    • 3 Pages

    The United States government normally permits conglomerate mergers. “One example of a conglomerate merger was the merger between the Walt Disney Company…

    • 660 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Southwest Airlines

    • 1025 Words
    • 5 Pages

    advantage: Comparative analysis and lessons from the practice of British airways, Lufthansa, and southwest airlines. Knoxville, TN.…

    • 1025 Words
    • 5 Pages
    Better Essays
  • Good Essays

    2. Analyze different issues surrounding a purchase by a financial or strategic buyer and their respective strengths and weaknesses.…

    • 864 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Us Airways Merger Summary

    • 1984 Words
    • 8 Pages

    The big news of the past few weeks in the travel field was the proposed and almost completed merger of AMR, the parent of American Airlines and US Airways. The merger creates the world’s biggest airline in the world. The recent injunction filed by the US Attorney General with the backing of the Government created a problem for the Airlines put a big question mark on whether the deal will go through or not. This white paper refutes the points stated by the Department of Justice as the basis of their argument to block this merger. Creation of this merger will benefit the passengers as well as the airline industry.…

    • 1984 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Finance

    • 5399 Words
    • 22 Pages

    Mergers and acquisitions are formed in the hope that they will create value and there is a vast amount of reasoning on why they have been introduced. Businesses will try and create value for the company, shareholders, customers and employees. The present value of all performance enhancements attributable to management change would result in the increase in value from just by managing the assets more efficiently (Damodaran, 2005).…

    • 5399 Words
    • 22 Pages
    Powerful Essays
  • Best Essays

    American Airlines

    • 1514 Words
    • 7 Pages

    The AA Advantage is a frequent flyer rewards program implemented by American Airlines. Launched in 1981, it is the largest loyalty program in the world, with over 67 million members. Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through partners. The AA Advantage has been American’s most successful promotional campaign. (AA.com)…

    • 1514 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    At&T's Acquisition of Mccaw

    • 2275 Words
    • 10 Pages

    After analyzing the list, it was found that the most appropriate precedent transaction is Bell Atlantic Corp.’s acquisition of MetroMobils CTS for several reasons. First, this transaction was the most recent which will best reflect the mergers and acquisition market condition and the appropriate risk for the cellular industry. Second, similar to AT&T, Bell Atlantic Corp.’s strategy was probably trying to penetrate the wireless industry after realizing that the wireline industry is maturing which was reflected in the relatively high multiple. Furthermore, the hard synergies between the two transactions are probably similar. Bell Atlantic probably used its brand name to utilize cost saving synergies in advertising similar to AT&T’s plan, as well as operational synergies by lowering CAPEX and SG&A costs. Moreover, Bell Atlantic was probably looking to capture revenue synergies…

    • 2275 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Brahma vs Antarctica

    • 829 Words
    • 4 Pages

    When considering the merger several aspects have to be taken into account. Table 1 provides an…

    • 829 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    The Merger

    • 839 Words
    • 4 Pages

    The purpose of this study is to come up with the best way on how the co-CEOs of Arlington Inc. would agree on selecting the managers in the upper and middle management levels of the merger.…

    • 839 Words
    • 4 Pages
    Good Essays