My project will be based on the case studies of two of the world’s largest successful mergers / acquisitions. I will be comparing the cultural changes they gone through and how they successfully handled, managed the change. Brief over view of the two companies as follows: Exxon Mobil:
ExxonMobil Chemical is a division of Exxon Mobil Corporation. It is incorporated in 1882. It is a global organization and is the world’s largest publicly traded international oil and gas company that focuses on technology, product quality, and customer service, with petrochemical manufacturing and marketing operations in more than 150 countries. ExxonMobil Chemical employs more than 14,000 people and in 2001 had $19.3 billion in revenue.
The company is currently organized in 11 core business units, and six of them are in the polymers area. ExxonMobil Chemical sells its polymer resins to other organizations that then incorporate them into finished goods. The Company has a number of divisions and affiliates and operate or market products in the United States and other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas. Mobil Merger with Exxon
In a deal that would forever change the petroleum industry, Exxon and Mobil merged in 1999 to the tune of $82 billion. It wasn’t a smooth merger, with the Federal Trade Commission and Department of Justice sticking their noses into the deal virtually from start to finish. Indeed, according to CNN, the deal was not approved until the two entities agreed to sell off 2,431 gas stations in the northeast, “making this the largest divestiture ever required by the commission. The new entity has enjoyed tremendous success, turning record profits in each of the past several years and withstanding regulatory scrutiny amidst allegations of corruption when gas prices rose in recent summers. The success of this deal was underscored when in 2009 Exxon Mobil announced the highest annual profits of any corporation in history.
References: http://www.reuters.com/finance/stocks/overview?symbol=XOM http://www.exxonmobil.com/Corporate/about.aspx
Procter & Gamble / Gillette The Procter & Gamble Company (P&G), incorporated on May 5, 1905, is focused on providing consumer packaged goods. A single word can sum up the core of what Procter & Gamble (P&G) is all about— brands. Their most well-known household products are: Tide, Crest, Gillette, Pantene, Pampers, Olay, Bounty, Oral B, Bounty Febreeze, Old Spice, Always, PuR. The list could go on, and on, and on, until we’d covered every one of the almost 300 brands under the P&G umbrella. Some of them (Crisco, Crest, Tide) are P&G inventions while others (Charmin, Gillette, Olay) have been acquired over the course of more than a century and a half of business.
Of that number, an incredible 23 of P&G’s brands produce around $1 billion each per year in revenue. The Company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores.In 2012, P&G recorded $83.68 billion dollars in sales. Fortune magazine awarded P&G a top spot on its list of "Global Top Companies for Leaders", and ranked the company at fifth place of the "World's Most Admired Companies"
About Gillette For more than 100 years, Gillette is a leader in male / female grooming, a category that includes blades, razors and shaving preparations.. In addition, the Company is the world leader in alkaline batteries and is recognized for its Oral-B in manual and power toothbrushes. The Company employs nearly 30,000 people globally and operates 31 manufacturing plants in 14 countries. IN 2005, MSNBC announced that leading U.S. household product maker Procter & Gamble was set to acquire razor and battery giant Gillette Co. for $57 billion, creating “the world’s biggest consumer-products enterprise.”
The company projected to have revenues exceeding $60 billion, opening the door for greater competition against Walmart and served primarily to combine the strengths of both companies: the marketing and distribution muscle of Procter & Gamble. “This combination of two best-in-class consumer products companies, at a time when they are both operating from a position of strength, is a unique opportunity," said A.G. Lafley, chairman, president and chief executive of