EECS 1019 Lecture Notes - Lecture 20: Sara Lee Corporation, Blog, Mobile Browser
15 Jun 2018
School
Course
Professor
EECS 1019 Lecture 20 Notes
Introduction
Acquisitions of Existing Operations
• Xerox Corp. and Fuji Co. (of Japan) engaged in a joint venture that allowed Xerox to
penetrate the Japanese market while allowing Fuji to enter the photocopying business.
• Sara Lee Corp. and AT&T have engaged in joint ventures with Mexican firms to gain
etr to Meico’s arkets.
• Joint ventures between automobile manufacturers are numerous, since each
manufacturer can offer its own technological advantages.
• General Motors has ongoing joint ventures with automobile manufacturers in several
different countries, including the former Soviet states.
• Firms frequently acquire other firms in foreign countries as a means of penetrating
foreign markets.
• Such acquisitions give firms full control over their foreign businesses and enable the
MNC to quickly obtain a large portion of foreign market share.
• EXAMPLE
• Google, Inc., has made major international acquisitions to expand its business and
improve its technology.
• It has acquired businesses in Australia (search engines), Brazil (search engines), Canada
(mobile browser), China (search engines), Finland (micro-blogging), Germany (mobile
software), Russia (online advertising), South Korea (weblog software), Spain (photo
sharing), and Sweden (videoconferencing).
• However, the acquisition of an existing corporation could lead to large losses because of
the large investment required.
• In addition, if the foreign operations perform poorly then it may be difficult to sell the
operations at a reasonable price.
• Some firms engage in partial international acquisitions in order to obtain a toehold or
stake in foreign operations.
find more resources at oneclass.com
find more resources at oneclass.com
8
EECS 1019 Full Course Notes
Verified Note
8 documents
