What's the Difference Between a Merger and an Acquisition?

Introduction 

A merger or an acquisition is the agreement that is made between two independently existing companies in making one new one. One of the most recent mergers was that of Amazon buying Whole Foods in the year 2017. The deal worth $13.7 billion was sealed in August hence giving Amazon a secure entry point into the competitive food and grocery industry. With this merger as the case study, the paper evaluates the aspect of performance from the perspectives of the public, managers, and shareholders using appropriate quantitative indicators. 

Quantitative Indicators 

The quantitative indicators are structured around facts and figures to promote the objectivity, validity, and truth of the desired measurements. These indicators measure the quantity and deal with outputs. For instance, the number of computers in a workplace. Quantitative indicators differ from the qualitative ones in that they can be easily verified and ascertain. 

Perspectives of the Managers 

According to the managers, the quantitative indicators applicable to the acquisition of Whole Foods by Amazon are centered on the improved and useful managerial practices, workload, and the revenue-generating strategies. On this note, the managers would have to increase the number of employees by adopting training programs that provide adequate knowledge of the operation of the grocery industry (Phillips & Connolly, 2017). These managers think that they have to maintain some if not all of the Whole Foods' employees while incorporating the former managerial approaches with their own. On the other hand, the perception of the managers is to include Amazon lockers in the Whole Foods stores. Also, they will have to integrate the merchandising systems and points-of-sale. The other key factor is the perception of increasing their marketing strategies through the development of capable and competent marketing plans. 

Perceptions of the Shareholders 

The shareholders believe that they are obliged to ensure that they integrate their board of directors with that of Whole foods. If not so, they would have to ensure that the committee is comprised of various representatives from the merged company. Moreover, these shareholders also perceive that amount of sale per share of Amazon's stock market should increase thus creating an increase in profits acquired (Cusumano, 2017). The other perception is that Amazon's shares will increase in value for those intending to buy. They will also consider the increased amount of revenue generated as an effect of this merger across a specified period. Overall, the shareholders speculate an increased amount of income from the Amazon-Whole Foods merger. 

Perceptions of the Public 

The public is bound to believe that this merger will promote a significant competition in the food industry. Following such an impression, it would be stipulated that the market prices for the food products and groceries will reduce. Furthermore, the public also speculates that there will be exclusive discounts as a marketing approach to promote the Amazon brand across the food industry. Nonetheless, such deductions are also perceived to be short-lived since Amazon is a famous company and it would only need the public to be aware of its involvement in the food industry. 

Conclusion 

The merger between Amazon and Whole Foods is relatively bound by various perceptions regarding the quantitative indicators of the marketing strategies and revenue-generation measures. Therefore, it can be deduced that the managers, shareholders, and members of the public are focused on the effectiveness of this merger and the promotion of their needs respectively. 

References 

Cusumano, M. A. (2017). Amazon and whole foods: follow the strategy (and the money).  Communications of the ACM ,  60 (10), 24-26. 

Phillips-Connolly, K., & Connolly, A. J. (2017). When Amazon ate Whole Foods: big changes for Big Food.  International Food and Agribusiness Management Review ,  20 (5), 615-622.