Merger Kmart Sears

Introduction

In the modern world, as globalization keeps expanding and corporations continue to grow nonstop, the terrain in which business is conducted faces new and constant changes each day. This instability surrounding commerce has in turn created an environment in which if a business does not have enough resources and corporate power, it will fail to compete against other companies. Thus, it is not a surprise that hundreds of businesses close down each year due to other corporations taking over the market. So what can companies do in these cases? As Sears and Kmart have shown, a possible solution is a merger.

A merger is "the combining of two or more entities into one, through a purchase acquisition or a pooling of interests." (Investorwords) It is thus evident that by joining forces, two companies like Sears and Kmart can increase their position in the market and stand a chance against other corporate giants like for example, Walmart. Nevertheless, there are many consequences, emerging from mergers that should be taken into account by top management before they decide to apply a merger.

This report will carefully analyze from a hypothetical point of view, how a merger between Sears and Kmart would take place. Both cultures have been previously analyzed and this research will explain whether or not they possess compatible traits that will make the merger a success or a failure. Furthermore, we will proceed to give key recommendations as to how the process can be carried out more efficiently. Finally, we will compare our theoretical merger to the actual one that has taken place within the past two years.

It should be noted that in order to make the analysis more dynamic, we will describe the actions of two character: jim and...

(EXPLAIN THE USE OF THE 2 CHARACTERS)

Description of a merger

Mergers between corporations are not as simple as physically bringing both organizations under one roof. Before we go in depth as to what are the consequences of a corporate merger, we should first know its definition. As Secretary of State of California, Bruce McPherson explains:

A corporate merger is a combining of corporations in which one of two or more corporations survives. There are several types of mergers with a variety of filing requirements based not