Acquisition of Target Corporation by Wal-Mart Stores, Inc.

Business acquisitions
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Date Introduction The proposed acquisition is for Wal-Mart will take over Target, both are retailers, but Wal-Mart has increased its market share in the retail market at a time when e-commerce is popular in North America and other parts of the west. Wal-Mart Stores, Inc Wal-Mart Stores, Inc. (Wal-Mart) was funded in 1962 in Rogers, Arkansas is the largest retailer in the US and the world and operates multiple store formats. The product portfolio is spread across the apparel, entertainment, groceries health, hard lines and home furnishing products. The retailer has adopted different store formats like the club stores, discount stores, neighborhood markets and supercenters. The company reported revenue of US$ 485,651 million during the fiscal year 2015 (2013) and US$ 500,343 million in 2018 (Yahoo Finance, 2019). The company's revenue grew 3.03% during 2015–2018. Wal-Mart sells products through e-commerce and the retailer site is . Target Corporation Target Corporation or Target was founded in Minneapolis, Minnesota in 1902, as the Dayton Corporation when the first store was opened. Target grew and became the largest division of Dayton- Hudson Corporation with various department store chains and revenues were $ 2,618 million in 2015 and $71,879 in 2018 (Yahoo Finance). In 2000 the retailer was renamed as Target Corporation (TGT) and the company has opened stores in across the US and the website is .  Acquisition fits into your company’s strategic direction Wal-Mart will increase its presence in the store and online retailer market with a wider array of general merchandise in the strategic merchandise units. Targets operates nationwide, has more than 28 subsidiaries and 971 branches and as the discount chain in the US are Wal-Mart, the consolidated company will increase its presence and market share, where there would be greater emphasis on economies of scale and operational efficiency. The Super Target store has many grocery options, but targets more upscale customers and the combined company will report higher revenue and be more competitive. Synergies in retailer acquisition  In the acquisition, synergy reflects   the advantages of combining the organizations and getting added value than if they operated separately. To achieve a synergy, it is necessary to evaluate the business process of each organization and to identify the gaps that can affect operations in the in future interaction.   The businesses have different cultures, which influence how the employees interact, but there are cost, operational and revenue strategies. Cost synergies The company would achieve cost synergy when there would be lower costs of operating the business because of economies of scale and improved capability.  There would be no duplication of services resulting in lower overheads and fewer facilities for the consolidated business (Glaister, Lordofos & Boateng, 2016). Additionally, the company exercise bargaining power with the suppliers and increased purchasing power.  Operational synergies The company would ...