Strategy Management Wal Mart and K Mart

Strategic Management Assignment 8 1. Do Wal market and K grocery play any merger and science in recent 5-10 years? Merger &Acquisition Wal marketplace K marketplace Acquisition -Bempreco This fraternity has been acquiesced by Wal mart. Bempreco is a retail chain in northeastern Brazil with 118 units (hypermarkets, supermarkets and mini markets). The science gives Wal-Mart Brazil its first stores in the Northeast market. -Seiyu GK is a Japanese class ofsupermarkets, shopping centers, anddepartment storesowned byWal-Mart Stores.In 2005 Wal-Mart acquired a majority stake in the company which it has since increased to 95% ownership,and 100% ownership in 2008. -OneRiot US-Wal-Mart Stores Inc acquired OneRiot, a Boulder- based provider of online advertising services, it was on Sep 2011. -Kosmix Corp US-Wal-Mart Stores Inc acquired Kosmix Corp, a Mountain View-based provider of search engine services, it was Jun 2010. -Netto Foodstore UK Asda Group PLC, a unit of Wal-Mart Stores I ncs Wal- Mart Stores (UK) Ltd subsidiary, acquired Netto Foodstores Ltd, a West Yorkshire-based owner and operator of grocery stores, from Dansk Supermarked A/S. -Wesfarmers Wesfarmers has continued to transform the size and shape of its business operations through strategic acquisitions and divestments. Steeped in a foundation of retailing since its formation, today Wesfarmers is one of Australias leading retailers and diversified industrial companies. From the small farmers co-operative three quarters of a century ago, to the nations largest employer with al close to 200,000 employees and more than 450,000 shargonholders, Wesfarmers remains committed to providing a satisfactory return to shareholders. Merger -Massmart is aSouth Africanfirm that owns local stake such as game,Makro,Builders Warehouseand CBW. It is the third largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and wholesaler of basic foo ds. On Tuesday 31 May 2011 Wal Mart has been merger with company. -Wal-Mart de Mexico Is a Mexican public corporation, which is 31% owned by the American retail multinational corporation Wal Mart Store.In December 2009 In December 2009 it was announced that Wal-Mart de Mexico bought 43% of Wal-Mart Centroamerica (Central America unit) from Wal-Mart Stores Inc and 40% from other share holders. -Sears Officallly named Sears, Roebuck and Co, is an American chain ofdepartment stores. Sears merger with K Mart in early 2005, creating the Sears Holding Corporation. The new corporation announced that it would continue to operate stores under both the Sears and K Mart brans. Around this time, Kmart changed its logo from a red K with the script mart inside to a red block letter K with the chains name in lowercase letters to a lower place it. CommentRegarding this case we know that Wal-Mart has more acqusition and merger than K Mart. Wal-Mart was doing acquisition to open new market share, get more profit. But for K Mart only make acquisition with Sears. Before this acquisition K Mart almost bankrupt, not only birth advatages but also acquisition has disadvantages. They was doing level acquisition and merger 2. wherefore do Wal Mart and K Mart companies exploit such M&A ? Wal-Mart K-Mart Wal-mart wants to get the synergies. The synergies help Wal-mart exploit economies of scale, deflect duplicated functions, share managerial expertise, and raise larger amounts of capital. Wal-mart usually acquired the company related to the retail industry it is called Horizontal mergers. The reasons for these are a desire for greater market power, allowing Wal-mart to exploit new markets and spread its risks. Sears Roebuck and Co merger, there are many identified synergies created enhanced position in retail market, winning real estate strategy, specialism of stores through wealth combination of proprietary brands, strength financial position, stronger management team and sup port from controlling stockholders. CommentBoth of these companies may seek an acquisition because it believes its target to be undervalued, and thus a bargain a good investment capable of generating a high return for the parent companys shareholders. Often, such acquisitions are also motivated by the empire-building desire of the parent companys managers. 3. What is the average performance of return for those M&A? Wal-Mart K-Mart -With the acquisition, Wal-Mart Brazil will operate 143 units in the country, including 13 Wal-Mart Supercenters, 10 SAMS CLUBS, two Wal-Mart Todo Dias and the 118 Bompreco hypermarkets, supermarkets and mini markets.The acquisition gives Wal-Mart Brazil its first stores in the Northeast market. -The acquisiton give Wal-Mart and Massmart its first store in South of Africa, Botswana, Ghana, Guatemala, Honduras, Lesotho. -Those most optimistic look to opportunities to cut redundant administrative expenses, increase buying power and crosssell branded mercha ndise amongst Kmart and Sears. -This acquisition is proper management and planning, the acquisition will be beneficial to employees from both companies and to consumers in general. Comment Normally if the company doing acquisition and merger, they will get more profit and advantages.In to a higher place we could know that now on Wal-Mart becoming Leader in retailing industry. Wal-Mart has dominant market share in South africa and some africa contries. Compare between Wal-Mart and K Mart, Wal-Mart has better perfomance than K Mart impact of acquisition and merger. 4. Is there any report about problem after those MA? Why? Wal-Mart K-Mart -The external problems are late entry, overlook competitors, destroy small business, joint venture and nationalism, culture different, house brand and price differentiate, suppliers, and government regulations. The inborn problems which it stock-still confronts in the operation systems are unique culture and concepts, and human resource manageme nt. -In October 2009, it was reported that Kmart andMartha Stewart Living Omnimediafailed to come to a new agreement. -Kmart and Sears companies had problems with human resources. -There will be also lay-offs which SHC need to manage well. Comment As we know that the acqusition and merger has disadvantages, like we already mentions above.There are two kinds of problems consist of external and internal problems. Like Wal-Mart, K Mart also has problem such as they acqusition in October 2009 with Martha Stewart Living Omnimedia failed. Regarding acquisition and merger, some companies if they want conduct acquisition have to thinking about training of their employee. Because If they do acquisition the management will be cut or mix together in one company thats mean they have to buid up human resource performance to gain competitive advantages.