INTERNATIONAL BUSINESS Essay Example | Topics and Well Written Essays - 2250 words - 1

INTERNATIONAL BUSINESS - Essay Example Other mergers leads to successful results. There are various debates about mega-mergers which involves mergers of businesses worth above $20 billion. Mega-mergers have people who are sceptical about it whilst others are very positive about it. This paper examines the dominant arguments and debates about mega-mergers in the world of business today. It would involve a critique of the different arguments for and against the practice of mega-mergers in the current dispensation. The report would contrast various debates and ideas relating to them. â€Å"Most deals in 2013 will probably be fairly small, designed to strengthen or fill a gap in the buyer’s existing operations. These are known as â€Å"plug and play†. Transformational megamergers grew rarer in 2012, with only four deals topping $20 billion. That was the same as in 2011, and fewer than in each of the three previous years.† (The Economist 09/02/13) AT Kearney argue in the seminal article ‘Merger Endgames’ that global level mega-mergers are inevitable as part of the cycle of consolidation and concentration in globalising industries where firms seek to gain leverage and accelerate their presence. In contrast Ghemawat & Ghadar (2000) take the position that business leaders need to look away from mergers and be more innovative in their approach to international business. As seen from the cases in seminars, cross-border mega-mergers can be very successful or unsuccessful. Research consistently shows that the majority either fall short of their initial aspirations, lead to reduction in total shareholder value post-merger or even demerge and divest in extreme cases. Despite this, there has been a merger wave on an unprecedented scale up to 2007 and it isn’t as if the emergence of global industries and corporations is at an end. You are required to critically evaluate the arguments of the pro-merger and anti-merger schools and take a conclusive position on whether global