Strategy and Globalization 1.edited (1)

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Running head: STRATEGY 1 Strategy and Globalization Students Name Institution Affiliation

STRATEGY 2 Strategy and Globalization Question one The acquisition of Monsanto by Bayer illustrates a clear direction towards one of the most significant issues facing us today. It is in tandem with Bayer’s objective of addressing significant global challenges, including guaranteeing food security and enhancing healthcare. Regarding this, Bayer seeks to address those challenges by concentrating on life sciences and delving into the intricacies of organic reactions within living organisms. The diversification into agrochemicals through the Merger with Monsanto by Bayer is consonant with its previous acquisitions, thus highlighting the organization’s strategy of tackling global concerns through diversification (Marques, 2020). However, for now, agriculture forms the core of feeding a growing and ageing population. In addition, by acquiring Monsanto, Bayer will be well placed to contribute significantly towards addressing this challenge. The entity can capitalize on the strengths of Monsanto, taking a lead role in seeds and traits and Bayer’s crop protection products to offer sustainable solutions in agriculture. Nonetheless, the decision to diversify into agrochemicals through the merger with Monsanto poses difficulties. The acquisition premium per share, an amount of compensation on Monsanto's shares price and the overall dollar value, poses alarming questions like overvaluation and shareholder’s economic worth. Furthermore, issues of antitrust and regulatory approvals are more than many. The integration of these two companies may need help in some states. Notwithstanding, Bayer’s decision to diversify into agrochemicals by acquiring Monsanto poses a chance for sustainable contributions to global challenges. It is part of the company’s efforts to innovate, considering the gravity of finances and image in agriculture(Clapp, 2022). When maneuvering through the intricacies associated with this

STRATEGY 3 strategic shift, Bayer needs to be aware of the ethical considerations and image concerns and ensure that the deal generates long-term profits without undermining its commitment to solving global issues. Question two The purchase of Monsanto occurred despite some anti-competitive concerns, its negative reputation, and an extremely high buyout price. One of the most significant challenges of our times is this strategic alignment for sustainability (Laureti, 2022). However, Monsanto has been surrounded by various controversies that raise questions about the reputation and morality of its operations. It raises concerns regarding the possible economic value for shareholders and a high acquisition premium associated with antitrust issues. The acquisition premium amounting to a predetermined premium percentage over Monsanto’s share price also raises concern over apparent overvaluation. It occurred explicitly compared to the purchase price and Monsanto’s value (Moreira, 2022 ). Additionally, the all-cash deal further heightened the financial risks for Bayer, which could have hampered significant investments essential for success in the agrochemical and pharmaceutical industries. Criticisms of the high-profile acquisition figures prompted concern about the transaction’s potential synergies and shareholder value. It is also worth noting that antitrust questions were essential and had to be considered in nearly every country. The primary focus should be on the United States, the central area of concern. it could result in a monopoly, decreased competition, reduced consumer bargaining power and affect farmers’ welfare. To mitigate the problems of various parties about Bayer’s merger plans, the company has pledged a share of the reverse antitrust break fee.

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STRATEGY 4 Further, it would be divesting its Liberty herbicide and the Liberty link-branded. However, there was doubt whether the divestitures would influence the deal's anticipated synergies and economic value. Monsanto faced its fair share of challenges from the adverse brand image and controversies surrounding its business activities, particularly organizations. Stakeholders such as farmers, consumers, creditors, and employees expressed doubts over the announcement of this transaction. Though the merger with Monsanto presented some strategic advantages, it also bore considerable challenges ethically and in terms of reputation for Bayer. Question three The case of the strategic choice by Bayer to merge with Monsanto and venture into agrochemicals is quite complex and multi-dimensional. The company's mission as a life science provider involves issues of food supply security and sustainable agriculture in the context of global challenges. However, The decision has associated risks such as the cost associated with the takeover premium that they may be willing to pay for, anti-trust concerns, and the negative brand image they have built towards them. The above elements provoke doubts regarding the expected benefits for shareholders and damage Bayer's impression. Such integration increases moral and branding issues involving Monsanto's risky way of doing things and customer outlooks towards it. The deal has raised eyebrows among farmers, consumers, shareholders, and workers. Furthermore, regulatory approvals in several countries and the potential effects of divesting on expected synergies make the matter more complicated (Rechsteiner, 2022). While making this strategic move, Bayer needs to strike a delicate balance between the expected merger outcomes and ethically acceptable and positive corporate image implications. It is pertinent for the

STRATEGY 5 company to overcome these challenges and create lasting economic value without forgetting about the global problems raised, which will determine the success of this merger. References Clapp, J. (2022). The rise of significant food and agriculture: corporate influence in the food system. In A Research Agenda for Food Systems (pp. 45-66). Edward Elgar Publishing. Laureti, C. (2022). The interaction between sustainability and competition policy. Marques, R. S. (2020). From Mega-Merger to Mega Failure: Bayer-Monsanto Merger (Doctoral dissertation, Universidade NOVA de Lisboa. Moreira, J. M. F. (2022). Equity research-bayer ag: the post-merger era (Doctoral dissertation). Rechsteiner, M. (2022). Discursive power in the global political economy of agriculture and food: the case of the Bayer-Monsanto merger (Master's thesis, Norwegian University of Life Sciences, Ås).

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