Morrison Takeover Safeway
Morrison Takeover Safeway Plc Marketing Essay
Rappaport (1998) stated that, the basic objectives of making acquisition is identical to any other investment associated with a company’s overall strategy, i.e. to add value. In practise, the motivation for expansion through merges, and the diverse range of issue such as action rises by using discounted cash flow technique.
First of I would like to define merges and acquisition:-
MERGES- Is used to mean the combing of two business entities which result in common ownership. Merges could be either horizontal integration, vertical integration and conglomerate integration.
HORIZONTAL INTERGRATION, where two companies in the same industry, whose operation are very closely related is combined, that of the case of Morrison and Safeway. One of the motives advanced for horizontal merges is that economic of scale can be achieved, but not all merges achieve such gains or enhancement of market power resulting from the reduction in competition
Merges and acquisition can have a profound impact on an organisational member and their family (Hayes,1981) indeed, merges and acquisition can sufficiently transform the organisational structure ,system ,processes and culture of one or both of the firm that people often feel stressed, frustrated and even frightened {Schweiger and ivancevich 1985}
Although, the recent retailing revolution in the early 1990s resulted in a number of very significant developments. The grow in size of retailers not only replaced the manufacturers dominance in the supply chain but also eliminated many wholesaler and started the trend towards backward integration of the retailer. in 1990s,there is continued concentration and consolidation in all areas of supermarket sector (Davies and Ward, 2000).
The industry structure is characterised by a number of common attributes including greater store size increase in retailer concentration and adoption of a range of formats by retailers to reach as wider as their
Rappaport (1998) stated that, the basic objectives of making acquisition is identical to any other investment associated with a company’s overall strategy, i.e. to add value. In practise, the motivation for expansion through merges, and the diverse range of issue such as action rises by using discounted cash flow technique.
First of I would like to define merges and acquisition:-
MERGES- Is used to mean the combing of two business entities which result in common ownership. Merges could be either horizontal integration, vertical integration and conglomerate integration.
HORIZONTAL INTERGRATION, where two companies in the same industry, whose operation are very closely related is combined, that of the case of Morrison and Safeway. One of the motives advanced for horizontal merges is that economic of scale can be achieved, but not all merges achieve such gains or enhancement of market power resulting from the reduction in competition
Merges and acquisition can have a profound impact on an organisational member and their family (Hayes,1981) indeed, merges and acquisition can sufficiently transform the organisational structure ,system ,processes and culture of one or both of the firm that people often feel stressed, frustrated and even frightened {Schweiger and ivancevich 1985}
Although, the recent retailing revolution in the early 1990s resulted in a number of very significant developments. The grow in size of retailers not only replaced the manufacturers dominance in the supply chain but also eliminated many wholesaler and started the trend towards backward integration of the retailer. in 1990s,there is continued concentration and consolidation in all areas of supermarket sector (Davies and Ward, 2000).
The industry structure is characterised by a number of common attributes including greater store size increase in retailer concentration and adoption of a range of formats by retailers to reach as wider as their