For Kim Woods ONLY

In Partial Fulfillment of the Requirements of

Abstract

Some time back, Amazon publicized that for $13.7 billion, it was buying Whole Foods Market (WFM). The purchase of this upscale grocery chain was priced at $42 per share, and this turned out to be the largest ever acquisition recorded. The acquisition of WFM surpassed the acquisition of Zappos.com, an online shoe seller in 2009 in which $1.2 was spent. Bloomberg reports that Jeff Bezos has bought into and made investments in over 100 companies after Amazon’s Initial Public Offering (IPO). According to the Amazon CEO and founder Jeff Bezos, Amazon’s strategy is often an opaque strategy such that for one to have a clear understanding into its strategy and vision, strong analysis of the all its mergers and acquisitions is key.

This research paper aims at giving an insight on mergers, acquisition, and international strategies. It focuses explicitly on Amazon merging and acquisition strategies; from their beginning to now and how their merging and acquisition strategies have affected its overall economic growth. Mergers and acquisition strategies play a significant role in the business decision, and this paper aims at expounding on how relevant these strategies are. It will also give an analysis of the various types and levels of strategy that the company applied/applies and why they are successful. Additionally, the paper will research on how a company like Amazon uses technology and other information sources to research issues that are consistent with their business administration. However, before discussing all the above, I will first provide the meaning and purpose behind mergers and acquisitions as well as the overview of international strategies.

A merger can be defined a corporate strategy of coming together of two or more companies to form a single company with the sole purpose of ensuring these companies’ financial and operational strengths is enhanced. These mergers usually involve either swapping of stock among the merging companies or through cash payment. In some instances, some mergers will include the rebranding of the merging companies or sometimes be capitalizing on the brand identity of both the companies.

The acquisition, on the other hand, is defined as purchasing some shares or corporate assets on the target company. Most often than not, an acquisition is mistaken for a merger. This usually occurs when both the target and its purchaser change identity and instead form a new company. Legally, when another company acquires the target company, it ceases to exist as it becomes part of the purchasing company. They can be hostile or friendly and commonly made via cash or debt in purchasing outstanding stocks. (Investing Answers 2001-2014)

Finally, international strategies can be described as business transactions that occur across national borders as well as around the world. This definition applies to all firms from the very small companies involved in imports and exports a small quantity to the very large firms with most if not all strategic alliances around the globe.

It is in these broad aspects of the business where we make distinctions among the different types of international firms since they help in getting a clear understanding the organization of the firm, its strategy, and other functional decisions.

Keywords: acquisition, Amazon, merging, strategies, managerial economic theory

References

Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson Higher Ed.

Ernst, D. (1993). Collaborating to compete: Using strategic alliances and acquisitions in the global marketplace. John Wiley & Sons Inc.