M&A (mergers and acquisitions) deal as an instrument that increases Disney’s Global competitiveness - Дипломная работа

Contents Introduction 1. Theoretical part and Metrological Basics of M&A Deals as an Instrument That Increases Global Competitiveness 1.1 Factors that Ensure Company’s Global Competitiveness 1.2 Definition of Mergers and Acquisitions and their types 1.3 Motives and drawbacks of M&A Deals 2. M&A Deals of The Walt Disney Company and Their Role in Increasing the Company’s Global Competitiveness 2.1 The Walt Disney Company, its Activity and Main Rivals 2.2 Competitiveness Growth after M&A Deals of The Walt Disney Company 2.3 Contribution of TWDC’s M&A deals to its global competitiveness 3. M&A Deal as an Instrument that Increases Disney’s Global Competitiveness 3.1 Influence of M&A transactions on The Walt Disney Company’s business segments 3.2 Improving the weakest segment of The Walt Disney Company Using M&A Strategy 3.3 Advantages for The Walt Disney Company after acquisition of Activision Blizzard, Inc Conclusion References Introduction In current economic conditions many companies seek for effective development strategies in order to increase their global competitiveness, to have higher profitability and total value. Today one of such strategies is mergers and acquisitions deals. M&As is one of the most widespread ways of development used by the majority of successful companies. These transactions become the integral processes of the modern market relations. Recently the level of competition in the majority of fields of activity has increased sharply. That is why there is a need for processes of mergers and acquisitions to ensure business growth for the company which seeks to take the leading positions in the world market. For this reason M&A deals can be considered as one of the most important mechanisms that ensure company’s global competitiveness. International experience in the area of M&A transactions shows that approximately 76% of such deals are terminated in failure. Thus, the integration strategy of growth has a positive effect only under the condition that company correctly carries out M&A transaction at all its stages: target selection and evaluation, settlement of the transaction, the final decision and post-merger integration phase. The total cost of M&A deals declared in 2014 was nearly 3,1 trillion USD. It is the largest indicator after 2007 and 2006 when the volume of M&A transactions reached 4,62 and 3,91 trillion US dollars correspondingly. According to Bloomberg, in 2014 11 most expensive transactions which worth more than 20 billion US dollars were declared, including the purchase of cable division of Time Warner by Comcast Corporation for 45 billion US dollars and purchase of the Irish producer of medical equipment Covidien by its American competitor Medtronic for 43 billion US dollars. Studying the experience of the leading international companies’ M&A deals is extremely important for the Russian business. Merges and acquisitions contribute the integration of national economy into the world one when Russian companies enter the world market. This integration has two main directions. Foreign companies buy entirely or partially Russian operating companies, introducing their capital, modern level of management and technologies. The Russian companies also use merges and acquisitions for the expansion on the foreign markets. The Russian market of M&As shows a tendency to growth within the last decade. Further growth and expansion of geography of a foreign production network of the Russian companies can make such integration symmetric (unlike unilateral penetration of the foreign companies into the Russian economy), making it stronger and more steady in the long term. In this paper we will analyze the most significant M&A deals of The Walt Disney Company and identify the effect of each transaction on each segment and of the business in a whole in terms of the increase of global competitiveness of the company. Afterwards, we will identify the most vulnerable segment and suggest companies, which Disney can acquire in order to increase its market share in this segment and thereby increase the global competitiveness of the whole conglomerate. To do this, features of global competitiveness, types of M&A deals as well as the impact of M&A deals on the company’s competitiveness growth and major financial and market data of target companies will be considered. The relevance of this study consists in the fact that M&A deals are becoming more and more popular as it is the strategy that is able to significantly increase global competitiveness of the company. TWDC is one of the leading companies in the entertainment market but it seeks to become the world leader and to do so it has chosen the M&A strategy. Thus, analyzing the impact of different M&A deals on the growth of global competitiveness of The Walt Disney Company will prove the fact that M&A deals play the crucial role in maximizing global competitiveness