Bigger Is Better
Essay by people • July 8, 2011 • Essay • 325 Words (2 Pages) • 1,392 Views
Dose bigger is really better for us. The answer is no or some one might say yes. The reason why I say no is that when it big it mean that you have to do more power, energy,etc. so if it bigger then it mean you need more power.
Bigger is better?
The arrival of the euro for electronic transactions on january1,1999, set the stage for intensifiled pan- European tie-ups among companies. From hotel chains and automobiles to book publishers and storck market, the name if the game is that" Bigger is Better." Nation-based players are now going former competitors of equal size. In the first three quarters of 1998 alone, European mergers and acuisitions totaled $643billion, about a third of that between companies of aproximately equal size, an ynysally high percentage. Even though some member countries are still outside of the Eurozone--Britain and Sweden among them---cross border alliances included those countriers as well.
Pharmaceutical companies were particularly active, partly in response to increasing homogeneity in national reimbursement policies for prescription drugs also under competitive pressure from american companies. Chemical giant hoechst of Germany merged its drug and agricultural products operation with that of French Phone-Poulenc, and drugmaker Zeneca of Britain bought Astra of Sweden in one of the biggest mergers valued at$35 billion. In 2004 two large French drug makers, Aventus and Sanofi0Synthelabos,joined forces encouraged by their gorverment, Whcih feared a takeover by Swiss Noyastis, another pharnaceutical giant. But is bigger necessarily better? one problem that plaguse these combinations is the difficulty of integrating differnt ciroirate cultures. Then ther is always a question about who is to run the combined operations. A planned merger between two of britain's largest pharmaceuticals Glaxo Wellcome and Smith- Kline Beecham,almost fell apart when the two CEOs could not agree on wh would run the merged businesses. But sice2000 the company is known as GlaxoSmithKline--- no hyohens.
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