Reference no: EM132243430
CORPORATE-LEVEL STRATEGY CLASS EXERCISE
For each example listed below, identify the corporate-level strategy being used by the firm(s) described in each situation. Here is an example for you:
Glaxo offered to acquire Welcome PLC for $14.15 billion in cash and securities, a combination that would make it the largest prescription drug company in the world.
Glaxo and Welcome PLC were competitors, therefore this is an example of Horizontal Integration.
1. Norweigan Cruise Line steered toward more luxurious waters, snapping up Prestige Cruises International, which operates the tony Oceania Cruises and Regent Seven Seas Cruises.
2. The florist, 1-800-Flowers.com, is buying the mail-order gift fruit basket company Harry & David, which also grows roses and operates 47 stores.
3. General Mills, the maker of Cheerio’s, hopes to spur growth by adding Annie’s popular lineup of natural and organic products such as the mac’n’cheese favorites line.
4. Facing a slump in commodity prices, the Anglo-Australian mining giant BHP Billiton will form a new company around its nickel, aluminum, coal, silver, and manganese units.
5. The drugmaker, Merck, is buying, Sigma-Aldrich, a supplier of chemicals and biological materials used in lab tests.
6. PacWest Bancorp acquires CapitalSource. When the deal is complete, the combined lenders will become one of the largest commercial banks in California.
7. Eastman Kodak will set up its personalized imaging and document imaging businesses as separate businesses for $650 million as part of a plan to settle $2.8 billion of claims and exit bankruptcy.
8. The drugmaker, Pfizer, is teaming up with its rival, Merck, to help develop an antibody to treat cancerous tumors. According to the deal, both companies will jointly fund all development and marketing costs, and will share all revenues.
9. The Chinese company, Rio Tinto, has sold a copper mine to China Molybdenum. The company’s reason for selling this mine was to cushion the impact of the falling molybdenum prices.
10. Community Health Systems has purchased Health Management Associates. These two hospital chains are joining forces under the largest hostile acquisition in the industry since 2006.
11. Publicis Groupe has combined their stock with Omnicom Group. The combined company will be the world’s largest advertising firm and may invite scrutiny from U.S. antitrust regulators.
12. Dupont sold off its glass-coatings division to Japan’s Kuraray.
13. The Hershey Co. launched a new candy brand, its first new brand in 30 years.
14. JLL Partners, a leading middle-market private equity firm, and Royal DSM, the global life sciences parent company of Greenville-based DSM Pharmaceuticals, announced the creation of a new company, which will be a leading global contract development and manufacturing organization for the pharmaceutical industry.
15. Hundreds of British drugmaker GlaxoSmithKline’s 17,000 U.S.-based employees will lose their jobs by the end of the year under the pharmaceutical industry’s latest restructuring.
Note: All of the examples above were taken from various issues of Businessweek and the Greenville Daily Reflector.