Consultancy Project Essay Example | Topics and Well Written Essays - 5000 words

Consultancy Project - Essay Example In 2004, Neary argued and said that strategic rationale and efficiency gain derived out of mergers and acquisitions are the two common reasons identified by Business Organization Literature (Neary, 2004, p.48). To study the literature on this research area, empirical researches done related to this study will be collected from the online books and journals. Most of the previous researches indicated that M&A activity has a 50 percent chance of success which is similar to the probability of getting a ‘head’ when an individual toss an unbiased coin. In 2004, Bruner argued and said that synergy means co-operate or work together and involves in merger when two organizations come together and pool in their resources and expertise for better performance, which is also known as synergy. Thus, in order to achieve continuous growth and survive global competition it is important for organizations to adapt M&A strategy. In today’s world the primary objective of a firm is to survive the cut-throat competition and one way to do that is to make more profits and add value to shareholders’ wealth. The ladder of success for any firm is ‘growth’ which can be achieved either by expanding existing resources or introduction of new products and services. Another way of achieving growth is through merger and acquisition (M&A). It has become an important an important way for firms to expand their product portfolios and gaining new markets. M&A also helps the firm’s to acquire knowledge, latest technology and improved management capabilities. In addition, M&A has been found to be extremely successful for specific sectors like pharmaceuticals where extensive Research & Developments are required. Tesco is the second largest company (after Wal- Mart) to earn profit as well as in the retail industry, the company holds the position of