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2 pages/≈550 words
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APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
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Topic:

News Write-Up. Hasbro to buy Peppa Pig owner Entertainment One

Essay Instructions:

Topic：Hasbro to buy Peppa Pig owner Entertainment One for $4bn（from BBC News website）
Requiem：Very brief description of the event (150 to 200 words)
Its connection to a specific topic of International Business (250 to 300 words)
How can others benefit and/or learn from it (200 to 250 words)
Provide the source of the article and/or its Internet line。
Check rate is no more than 15%
Example of a News Write-Up:
“Walmart in Costa Rica Begins Construction of Mega Distribution Centre” – Inside Costa Rica
Description of Event
In an article published in Inside|Business’ Costa Rica edition news was broken that Walmart has begun construction of an almost 50,000 square meters (just over 12 acres) distribution center that will not only be Walmart’s largest in the region, but the largest building of its kind in the region. Located in Coyol, Alajuela, this new facility will supply not only regional Walmarts, but other stores that Walmart owns in Costa Rica, such as Masxmenos, Maxi Pali, and Pali. Walmart’s strategy when entering the Costa Rican market ended with them buying out many of the local retailers that were already established in the country. This large distribution center will allow the company to increase availability of items by centralizing the suppliers under one roof that is conveniently close to the businesses that need it. The distribution center is slated to end up costing Walmart sixty-eight million US dollars and will employ over two hundred direct employees over the next five years. Walmart expects the new facility to begin operating in the first half of the year 2013.
Connection to International Business
This action that Walmart is taking in Costa Rica is an example of horizontal expansion. Horizontal expansion takes place when a multinational company takes its business practice and duplicates it overseas to supplement overseas operations, without affecting operations in the home country. This new distribution center in Costa Rica is not intended to replace any of the distribution centers in the United States, so this does not fall into the category of vertical expansion. Businesses use horizontal expansion in order to improve their operations in that separate market, instead of using the foreign operations to help supplement their domestic market operations. This is the strategy being employed by Walmart. We can see that in action because they have an entirely separate division, Walmart Mexico & Central America that handles all the business in that region. This regional style of managing the company is known as geographic area structure, which is defined in Global Business as a way of organizing a multinational company based on different geographic areas, most appropriate to engage in a localization strategy. How Others Benefit/Learn from Situation Other companies can definitely learn from Walmart’s example. It’s a definite strengthening of the supply chain, allowing Walmart to provide a much more efficient distribution and expedite turnaround times, which is very important in retail businesses. Walmart’s United States distribution centers are gems of the industry, allowing Walmart to replenish items almost as soon as they are taken off the shelves. With the new distribution center in Costa Rica, the company can begin to implement some of the same practices that are used in the United States and never let any of its stores (whether the Walmart brand or the other local brands) have empty shelves. This is a great example of how to horizontally expand once a company has taken control of the local market. What it needs to do next is to increase its efficiency, which is what Walmart did in establishing this distribution center. This will result in gains for Walmart and its customers and clients. Customers will not have to deal with empty shelves and clients can sell more of their merchandise to the giant retailer. The distribution center being very local will help both its Walmart brand and its local brands. Since the Walmart brand sells more of the American items that Costa Ricans are looking for, Walmart stores in Costa Rica will not have to wait long to replenish their items. For the other brands, local products will not have to be sent very far either, leading to faster turnaround times, as mentioned prior.
Link: http://www(dot)insidecostarica(dot)com/dailynews/2012/august/17/costarica12081708.htm

Essay Sample Content Preview:

News Write-Up
Name:
Institution:
Description of Event
In an article published on BBC News, it has been established that Hasbro, a toy maker based in the United States, intends to acquire London-listed Entertainment One which owns Peppa Pig, a famous children cartoon. The deal is estimated to be about $4 billion. Entertainment One also owns other titles suited for preschool, such as P J Masks. The deal reached between Hasbro and the United Kingdom-based company is the most recent case of the strings of companies acquired from the United Kingdom by foreign investors. The shareholders of the company are expected to get £5.60 per common share after the acquisition is completed under the all-cash transaction (BBC NEWS, 2019). This acquisition will be critical in promoting the development and diversification of the American toy giant; this is because the firm has the potential to exploit the entertainment capabilities of Entertainment One, and this will result in the creation of a portfolio of different brands with global appeal to fans and families.
Connection to International Business
The case of Hasbro’s interests on Entertainment One is a clear example of overseas investment. Different companies that wish to expand their operations, they do so by entering other markets from different parts of the world. There are different approaches that firms are able to achieve this; companies can open branches, merge or acquire other organizations, thus which make it possible for the firms to provide goods and services to a completely different pool of consumers. Such actions, in most cases, result in the overall growth of the business. The acquisition also makes it possible for the shareholders to maximize and satisfy their interests. Ideally, the acquisition is considered an effective strategy for developing an existing company; this is because starting and growing a competitive business, particularly in different parts of the world, is hard.
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