International Business and Management for Mergers-myassignmenthelp

Question: Discuss about theInternational Business and Management for Mergers. Answer: External factors were in favor of Kelon to switch to rural and expand their business of appliances there. After the 1998 housing reform by the Chinese government, there were advancements in the real estate markets. Due to the rapid growth in the market, it was obvious that increased number of houses will be built within the coming years. This will potentially produce a huge demand for air conditioners and Refrigerators in the rural and urban market. Technological advancements in power generation and supply also stabilized the lives of the rural peoples. Electricity was now available for more hours than before which led to increased demand for the electrical appliances. Similar to urban areas, people in rural areas were also looking for a betterment of their living standards and a sophisticated life with basic needs like refrigerators and air conditioners. It is an unquestionable fact that the rural market was growing at a brisk rate, so there were very favorable circumstances for Kelon to grow as a company in rural areas as well (Christine, Schmidt, Schneider Stoll, 2017). As Kelon has diversified itself and has been serving more products than before, it was important for Kelon to strategize their plan and expand its business. By focusing more on Merger and Acquisition rather than internal growth, Kelon could expand its business more than ever (Dong, Dingquan and Jiahui, 2016). Increasing the production capacity to equate the supply with the demand of the people should be the priority. Also, not only this, Kelon should be more marketing oriented rather than being a production-oriented firm. A reasonable pricing strategy is to be formulated for the people of rural areas so they can opt out for the products more and more and be a true and loyal customer to the brand (Biao, 2014). As it is clear from the fact that Kelon is already a leader in the field of appliances, it should ensure that the product's brand loyalty, premium quality products, and value-added services are up to the mark that would help its business to expand in the rural areas as well. Being there for about three and a half decade into the Electronic Appliance market, Kelon already had a brand name and trust in both urban and rural areas, so it is important that Kelon should target rural market with its existing brand rather than switch into a new brand. Existing customer, as well as a new buyer, will trust and buy a product of a company who is into the market for a long duration of time than that of an amateur company (Zhang, Zheng Zhou, 2016). It is accountable from the fact that, in 1998, in terms of market share Kelon was listed in the top 10 firms in AC market. Also, it was considered as a high-end brand with a premium product quality. So it was important for a company such as Kelon to use its current brand value of the urban market and expand itself into the rural market rather than opting out for a new brand name. References Biao, D.E.N.G., 2014. Analysis of Financial Risk Prevention in Mergers and Acquisitions.International Business and Management,9(2), pp.138-144. Christine, B. A. C. H., Schmidt, B., Schneider, R., Stoll, J. (2017).U.S. Patent No. 9,769,876. Washington, DC: U.S. Patent and Trademark Office. Dong, Y., Dingquan, H. and Jiahui, Y., 2016. Cross-border merger and acquisition of Chinese domestic listed companies.Frontiers of Law in China,11(2), pp.370-400. Zhang, S., Zheng, Z., Zhou, Y. (2016, June). An empirical analysis on business performance of electrical appliance enterprises with Home Appliance Going to the Countryside policy. InService Systems and Service Management (ICSSSM), 2016 13th International Conference on(pp. 1-5). IEEE.