8. Brainstorm the ideas on strategic alliances.

9. Read this short text to get information about mergers.

In most of the sentences there is one extra word which does not fit. Some sentences, however, are correct. Find the extra words.

Why do so many mergers fail? Many consultants refer to how little time companies spend before a merger in thinking about whether their organizations are compatible. The benefits of mergers are usually couched down in financial terms: cost-savings can be made or the two sides have complementary businesses that will allow them to increase up revenues. Mergers are about compatibility, which it means agreeing whose values will prevail and who will be the dominant partner. So it is no an accident that managers as well as journalists reach for a marriage metaphors in describing them. Merging their companies are said to 'tie the knot'. When mergers are called off, the two companies fail to 'make it up the aisle' or their relationship remains very 'unconsummated'. Yet the metaphor fails to convey over the scale of risk companies run when they launch acquisitions or mergers. Even in countries with the high divorce rates, marriages have a better success and rate than mergers.

From the Financial Times.

9. Discuss these questions.

1. What are the most difficult problems following a takeover

a) for management?

b) for employees?

2. How can they be solved?

10. Sum up information you’ve acquired about mergers and acquisitions considering the following issues:

• the reasons for mergers;

• sorts of mergers;

• the preparatory steps for successful mergers;

• the reasons for success or failure of mergers;

• your own opinion of mergers.

Unit 2. The takeover bid

Cecil Parkes Clothes Limited, a company who manufacture exclusive women’s clothes of very high quality and at very high prices, have established that woolen clothes will remain fashionable for a long time. They are already manufacturing several lines in woolen clothes, and now feel that it would be worth their while to buy their own woolen mill to ensure their supply of high quality Shetland wool.

They have previously been supplied by Highland Wool, a company which owns a woolen mill on the Scottish mainland. Because they have always been very satisfied with the quality of the wool they have received, they have decided to find whether Highland Wool’s business is available to buy.

1. Complete the words in the right-hand column.

to produce	manufacture
expensive and produced in limited numbers	e _________
to find out, to make sure of	e__________
one of firm’s products	l__________
made of wool	w_________
something that can be obtained is	a_________

2. Fill each gap in the following passage with an appropriate word.

Cecil Parkes _______ Limited, a company who manufacture exclusive ______ clothes of very high ______ and at very high prices, ____ established that woolen clothes will ______ fashionable for a long time. _____ are already manufacturing several lines _____ woolen clothes, and now feel ____ it would be worth their ____ to buy their own woolen _____ to ensure their supply of ____ quality Shetland wool.

They have ______ been supplied by Highland Wool, ____ company which owns a woolen ____ on the Scottish mainland. _______ they have always been very _______ with the quality of the wool they have _______, they have ______ to find whether Highland Wool’s business is ______ to buy.