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and also can not agree with an accordant merger target. Thus, considering the best interests of the companies and shareholders, BAE Systems and EADS decided to terminate negotiations but continue each respective strategy. BAE Systems and EADS blame the failure of the negotiations on the government that in negotiations with the interrelated government, the two companies has not been able to fully reveal the details and benefits of the merger. They pointed out that, at the beginning of the negotiations, both sides have made it clear that as long as the structure of the merger is subject to the interests of shareholders, and to get the support of the shareholders, BAE Systems and EADS would spare no effort. The two companies have been working to achieve this structure.

 

2.1 Why BAE-EADS merger did not succeed?

 

Invesco Perpetual said “could not see the rationale for the merger between a British defense business and the owner of Airbus. Other than diversification – which investors can achieve for themselves more cheaply and simply – Invesco does not understand the strategic logic for the proposed combination.”(Guardian 2012)

 

2.2 Does strategic alliance actually succeed?

 

Strategic alliances refer to cooperative agreements between potential or actual competitors. (Hill, p488)

 

If the merger of the two companies had approved as we mention at the beginning, it will produce the largest comprehensive civil aircraft and defense manufacturers in the world.

 

In 2011, for example, the total income of BAE and EADS is more than $ 94 billion, while only $ 69 billion of Boeing's total revenue. For a long time, BAE and EADS have good relations of cooperation, both joint venture MBDA is a famous weapons development and manufacturer. In addition the two sides in the Eurofighter project ('Typhoon') has been maintained long-term cooperation. The two companies said that if the merger is successful, it would create a world-class enterprise groups, and their businesses would cover the aerospace, defense and security, and at the same time brings industrial advantage of France, Spain, the United Kingdom, Germany and the United States all together. (BBC News 2012)

 

The Global Strategy of BAE Systems

 

For most businesses, the primary goal is creating the highest value of the enterprise for owners and shareholders. To maximize performance of enterprise value, the managers have to increase the profitability of the company and its rate of profit growth by pursuing strategies in a long term. (see Figure 2) Managers can improve the profitability of the company through various strategies, such as reducing costs, increasing the value to the product, which are conducive to raise the price本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。