Mergers and Acquisitions



ABSTRACT

Mergers and acquisitions are the methods by which corporations or firms combine. M&As occur when two or more corporations become one. M&As are the preferred management tool for market share growth and revenue, the maintenance of competitiveness, and executive survival. Investors favour M&As to generate optimism. Post merger success for a publicly traded company is measured in terms of post merger market share growth and market capitalization (i.e., share price times the number of outstanding shares). The competitive advantage developed by Google due to its perpetual advances in the technology and increasing popularity is one of the main strengths of the company that has gained significant revenues to the company that is mainly attributed to the brand equity success. Among the weaknesses, technological issues and material filtering are the two most important issues that have been acted as the weakness of the Google. The user privacy is not given enough importance and is compromised through its various applications like Gmail and Google Search. The presence of the sites including pornography image along with the results of the databases search engine is considered to be an important weakness. It inhibits usage of Google search engine by the children of younger age groups and reduces the popularity of the site. Thus the issue of the filtration of the available data is another important matter that is considered as the weakness of the Google. In this paper, the strengths, weaknesses, and corporate culture of Google have been discussed. The environmental and internal necessities along with the successful behaviours important for Mergers and Acquisitions have also been discussed. At the end, the merger between Google and Youtube has been shown as an example.

Mergers and Acquisitions

Strengths of Google

The competitive advantage developed by Google due to its perpetual advances in the technology and increasing popularity is one of the main strengths of the company that has gained significant revenues to the company that is mainly attributed to the brand equity success. The company is engaged in providing valuable services and has been possessing brand loyalty, apparent quality, and maximum awareness by paying particular attention to the branding. The branding of Google has made it able to be used as the favourite search engine by the people (Cartwright & Cooper, 2004, 327).

The competitive advantage of advertising is also considered to be the strength of the company that made it to survive very easily in the times of recession even and made it able to earn the revenues of $5.94 billion that was considered to be an increase of 7% from the past year's profit. “AdWords” that is an advertising program of Google, has enabled the company to present its services and products in the form of link that is appeared along with the relevant search results asked by the consumers (Covin & Kolenko, 2007, 22).

The quality of personnel is another strength that is possessed by the company as one of the key strengths of Google. The personnel working in Google are highly qualified ...