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Markets, Marketing and Strategy - Assignment Example
The present analysis of the strategies and marketing tools of the merger between the two companies, based on their press releases, will be designed through the use of the two exact tools - PEST analysis of the general strategy and brands analysis. The aim of the analysis is to clarify the principal issues, which the companies for the merger face at present, to forecast the possible changes the merger will bring and offer possible solutions for the issues described.
BHI is a consumer healthcare business largely selling over the counter products. In the year to March 2005, BHI reported net revenues of 523m (+4% on 2004) and Operating Profit of 88m (+9% on 2004).
PEST Analysis. A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. (Vitale 2001, p. 27) Speaking about the political factors of the merger to take place, the principal ones to consider are trade regulations and tariffs, as BHI performs business in the three different locations all over the world, as well as such merger may be taken as the striving of both company for creating a monopoly. Taxation should also be taken into account; however, as BHI itself used to successfully run all three businesses, and the European Commission has approved on the merger, these factors are not threats here, though should be kept under control. ...