Managing People Challenges

In the Managing International Acquisition simulation dealt with the fusion and scholarship of a foreign national bank overseas. In doing the seek for this project, I found interesting examples of recent amalgamations of Reebok/Adidas, Nextel/Sprint, and MBNA/Bank of America. The Reebok/Adidas merger is all about acquireing Nike, the industry leader in market share. The objective of the tieup is undecided. The cardinal companies, which jockey for No. 2 and No. 3 slots behind Nike (NKE ), view their prospects for competing against the Beaverton, Ore., behemoth as better together than apart. (www.businessweek.com) In Europe especially, the shadow of Nike grew large in the last year as the U.S. company surpassed Adidas in the soccer shoe segment for the first time -- for Adidas, a game-changing event equal to, say, Toyota (TM ) surpassing Ford (F ) in U.S. sales. (www.businessweek.com) In the U.S., Nike reigns supreme. In 2004, it had about 36% market share in the athletic-footwear market, according to the Sporting Goods Manufacturers Association International, while Adidas has 8.9% of the U.S. market and Reebok 12.2%. The U.S. ranks as the worlds biggest athletic-shoe market, accounting for half the $33 billion exhausted globally each year on athletic shoes. (www.businessweek.

com) It is crap that this merger is a product of both companies desperation to catch Nike and surpass their market share. Instead of cutting into each others shares and profits, the deuce companies uniting in this cause stands a better fall out to catch Nike. Nextel and Sprint merger was the most surprising merger that I have been aware of in my young life. The two companies are no where near alike. Nextel works off of a network platform called IDEN and Sprint works on CDMA platform. These two platforms are not a like. Once doing the research it became clear to why this merger happened. Sprint PCS, which is part of Sprint (Telecom Carrier), precious to separate themselves from the corporation....

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