Exxon Corporation Case Study

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Mergers and Acquisitions Exxon Mobil Merger Related diversification provides the company the opportunity to create more value, and less risks, which in the case of Exxon-Mobil merger, with a strategy of creating product diversification which according to Stead & Stead (2014), “into clean energy by acquiring natural gas companies like XTO Energy, which is for its ability to extract natural gas from unconventional places, as shale rock”. The company accomplished the goal of creating more value and diminished the risk of becoming less competitive in the market. In November 1998, the historic deal of $80 Billion paid by Exxon to merge with Mobil closed. The new company name Exxon Mobil Corporation, with headquarters in Texas, would give…show more content…
I work for the Yale New Haven Health Care System, as a Bridgeport Hospital employee. Bridgeport Hospital was acquired by the system in 1995 along with Greenwich Hospital. Thereafter, the system has acquired other hospital as St. Raphael Hospital, Lawrence and Memorial, and Milford Hospital, which is in progress. The main reason which had driven these changes, which have forced community hospitals to merge with larger health care systems is because price increases, changes in reimbursement policies, regulations, mandates for technology improvement, which small community hospitals have not been able to afford. This have driven them to merge with larger organizations as Yale New Haven Health Care…show more content…
Covidien on the other hand, was a diversified technology group company, with core capabilities and unrelated fields. As a health care organization employee being involved in the supply chain management area, I have seen the merger of Medtronic and Covidien evolution, since its origin in 2014. Medtronic announced the merger in the summer of 2014, a $42.9 billion merger, which moved up Medtronic into a very competitive advantage with other companies as GE and Siemens. At this point the merger gave Medtronic access to therapy innovation, economic value, and globalization. When combined the two companies would offer hospitals, providers, and patients improved care and surgical performance. For shareholders “immediate value and the opportunity to participate in the significant upside potential of the combined organization.” (Hughes,

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