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The merger between Wells Fargo

The merger between Wells Fargo and Wachovia, as announce and defined, Wells Fargo will acquire all common outstanding shares of Wachovia. And the merger will mean that Wells Fargo will assume and acquire the whole of Wachovia Corporation and all business transactions and obligations. As soon as both Wells Fargo and Wachovia are joined the combines companies will have about $1. 4 trillion in assets, around $700 billion in deposits, 48 million customers and around $200 billion assets under management in mutual funds. The merger between Wells Fargo and Wachovia was a union of two great financial companies.

Wachovia, who’s known to be a provider of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services. Wachovia being the 4th largest banking company, with 13 million household and business relationship, 4th largest domestic online bank and with 90 percent of our domestic deposits are in the US where they are ranked No. 1 and 2 in deposit market share. And Wells Fargo to be a diversified financial services company that operates around the world. It is the fourth largest bank in the US and the second largest bank by market cap.

One strong force joined with

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another strong force, what do we get? Economically, the merging of Wells Fargo and Wachovia is a well planned job. Because of this and the fact that these two companies are strong, this move can help, benefit and give people employment and having to foreclose, let’s say, because of bankruptcy is not very good. To team up with a strong company is a good business strategy for both the security and the development of the business, for it to grow into an empire but for mankind as well. 2. ) Consider the Microsoft case and one other monopoly case.

Evaluate the remedies and their resulting market structures. How much did society gain from the cases? In the case of Microsoft, the way I see it, Microsoft found an opportunity to widen and broaden the target market. It was a matter of how to do and make business. You put up or start a business; it’s natural to find ways to rise above. Why would you want to just give your mediocre best? But in reality, there are rules and the law to follow and importantly ethics must be played. In the court of appeals for Microsoft, there have been proof that Microsoft had monopoly power over the market shares.

Microsoft appealed that monopoly power should be proven directly. But the failed the argument because the structural power analysis is to determine if the potential substitutes constraints a firm’s ability to raise prices above the competitive level. The Court had decided discussions of the procedures to be followed in the imposition of remedies. Plaintiffs gave their final proposal along with six new affidavits supporting the exhibits. In that proposal it stated that Microsoft be separated in to two independent corporations. One, being for Microsoft’s operating systems and the other, for their operations.

With this, Microsoft gave their response saying that it was too severe and that it was hard to resolve in remedies-specific disputes. It is clear that Microsoft has won from the start the market shares not only in the US but other countries as well. The company has made its mark in terms of their industry the strongest competitor. Let’s also take for example the case of Gerber baby food. The brand is well known for baby or infant things and food. You could say it is a leading brand. Gerber has captured a great piece of the pie in market shares and definition.

Just like Microsoft, Gerber posed as a big threat to the other baby food companies like Heinz and Beech-Nut baby Food Company. Making these two companies merge. The reason for this that they believe or having the presumption on putting their strengths and brains together, they can if not be stronger, equal to the strength and capability of Gerber and lessen the competition. However, on my personal note, any company can perform and be as competitive with the others when that company has made itself position in the market. With the right survey and research and planning the company could be on its way. 3.

) Evaluate the “raising rival cost” argument in monopoly cases. Discuss the 3M cases. 3M and LePage’s are suppliers or manufacturer’s of tape, for home and office use. 3M dominated the market share win till the 1990’s. LePage’s decided to sell a second brand in the 1980’s of transparent tape which only took up a portion of the market. LePage’s complains that of the competitive market, 3M started a series of related, anticompetitive acts hindering the availability of lower priced tape to buyers. LePage’s then sent this antitrust asserting that 3M used monopoly over its tape. And LePage’s claims of unlawful agreements of 3M.

This case was a battle of who did what. There were claims that 3M had to pay off some companies for the exclusivity of their transparent tape and other unethical moves made to discredit eh company’s integrity. In the conclusion there was enough proof that 3M used its market power to establish its monopoly to the detriment of LePage’s, who is the only competitor of 3M 4. ) The justice Department merger guidelines utilize a hypothetical monopoly raising price by 5 percent and not having to withdraw the price increase because of competition making the price increase unprofitable.

Suppose a 10 or 20 percent standard were used. What would happen to market definition and merger enforcement if the higher figure were used? Suppose a lower figure like 2 percent were used. In this case it is hard to assume which percentage is better or what is possible or likely to happen. Though there are statistical studies for this and it probabilities. Nevertheless, it is still a business and people will definitely find was to go around and find a loop to get ahead on the market or target. 5. ) Evaluate the geographic market definition issues in the case of hospital mergers.

Geographic Market of hospitals has two: 1. ) Urban and 2. ) Rural. Hospitals located in the urban areas are bigger and has more facilities to cater to inpatients. They have more care facilities and that are adequate for all ages and for all illnesses. However, on the other hand hospitals located in the rural palaces or areas are relatively smaller in terms of size and the is number of inpatients as well. Most patients in the rural area are of old age and it is really more of medications that the hospital needs and not too much on the hospital supplies for patients’ admittance.

Though the differences of size and number of patients this does not mean that one is better than the other. It is just a question of what is needed more in the area. Take for example, Chattanooga or Rockford, because of its massiveness, the court advised or declared for them to work in sets or clusters. It is hard and attend to people is a vast place, especially you are trying to save lives. The joining or merging of two hospitals is just like the merging of two companies, as mentioned. For whatever the reasons are for buying off, or acquiring and merging, it is always for the best for everyone concerned.

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