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Contents

Introduction
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Would you think shells acquisition of Billiton is related diversification?

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Relate the corporate strategy perspective of shell and Gencor to their approaches to the post-merger integration of Billiton into their respective organization how would you explain the difference

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With the benefits of hindsight compare Shells parenting advantage for billion to Gencors. To what extent can the differences explain the difference in success of the two mergers?

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BHP Billion promises to be both responsive and able to realize significant synergies. Do you think this will make BHP a better parent than both Shell and Gencor? Will the absence of Brian Gilbertson make a difference to BHP success as the new Billion parents.

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References
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Introduction
In this assignment I will be looking at Billiton a company that is in the mining industry the company main products are metals and petroleum. This is assessment I will talk about shells acquisition of Billiton and see if the acquisition was related to diversification I will also talk about the difference in the merger of Shell Billiton and Gencor Billiton and see if the two post-merger in their corporate strategy. The assessment will also compare Shells parenting advantages for billion and Gencor parenting advantages for billion and explain the differences in the two successes of the two mergers. The assessment will also talk about BHP which promised to be a batter parent then Shell and Gencor and also the how the absence of Brian Gilbertson effaced the BHP Billion.
Question 1:
Would you think shells acquisition of Billiton is related diversification why?
Shell believed that one day the oil will run out and wanted a solution many oil companies focused on expansion into the mining and metal industry as the two industries had similar characteristics to the oil industry. Diversification is a practice of going into new trade markets through fresh products this can be undertaken by either one acquisitions or extension of the company's present capabilities and assets. The diversification practice is a critical section in the long range development and success of a company (Answers.com). Shell believed that diversification which means that Shell wanted to invest in a new market as it wanted guarantee long term sustainable growth however the company believed the metal industry had potential and look at billion which was in the market of mining . Shell was worried and agreed that the strong growth of the oil industry will not continue (case study 26/5/14 804).
An acquisition is corporate strategic in which one company (Investopedia) buys a anther company assets and take over in this case (run on sentence) Shell bought Billiton for £423millions (case study 26/5/14 806) Shell decided to enter the word of metal and started to develop some new projects in individual basis in northern region of Netherlands (case study 26/5/14 806) Shell realized that an a acquisition will be better and much quicker than growing and starting from scratch. Shell believed it is more useful to take over an existing firm than having to start a new one which can take a long time in setting down in the market. Without having undertaken this acquisition it would have taken Shell 40 years to make and develop a new mining business and the company did not have that patience (case study)
Shells acquisition of Billiton is not related diversification (define) as Shell (use capital letters for full Names please) are in the oil industry which is about drilling and Billiton is in the mining industry the two industry do not come together as they are very different. According to Ansoff’s (valuebasedmanagement.net)26/5/14) Shell are currently market penetrations which is the oil industry for them to diversification in to a new market they will have to start a new product and