Three Firms: Changes In Their Business Environment Reports Examples

Type of paper: Report

Topic: Company, Business, Oil, Market, Firm, Mobile, Telephone, Products

Pages: 6

Words: 1650

Published: 2020/12/14

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Mobile network Three to buy 02 in a £10bn deal; a story done by Jennifer Ranking and Juliet Garside of The Guardian, Jan 23, 2015.

Williston suffers after a downward plunge in oil price; a story by Peter Foster of the Telegraph,8th Feb 2015

Astonish, a Bradford cleaning company, widens its market; a story by Elizabeth Anderson, a business reporter for The Telegraph, 7th Feb 2015
.

Background

Three, a Mobile network company, intends to buy a rival company, 02 for £10bn.The wealthiest man in Asia is leading the transaction. Li Ka-Shing plans to buy 02 in cash and would then own the largest company dealing in mobile phones in the UK. The number of customers would then increase to 31.5 million consumers. Williston an oil-rich town is facing threats reduced population after oil prices reduced from 110$ a barrel to 50$ a barrel. The population has reduced drastically after the laying-off of the employees of oil companies. Business that sprang up to service the employees has shut down, as a result. Buildings are counting losses due to delayed rents and reduced tenants. The town has changed from being a booming one to almost becoming a ghost town. Astonish is a firm that specializes in kitchen cleaners. The company is expanding due to an expansive market because of producing high-quality goods and proper marketing strategies. The market has grown to an international level from the initial local market.

Mobile Network 3 to Buy 02 in a £10bn Deal

Consumer specialists predicted the possibility of millions of mobile phone users facing higher rates for both data and calls. The wealthiest man in Asia is about to take over the chief mobile network in the UK. Three announced that individual takeover talks were underway with its arch competitor 02.Li Ka-Shing has a net worth of £25.5bn ($34.1 bn).Hutchison Whampoa, a conglomerate of Li, is Three’s parental firm. Three confirmed its readiness to pay £ 10.25bn, for competitors 02, mainly in cash. The result of this deal would be the creation of the largest firm dealing in mobile phones in the UK. The estimated number of consumers would be 31.5 million in number, and the network owners would reduce to three from the initial four.
A take-over is the coming together two or more firms to form one unit after one firm buys off the others. The case above is an example of the process of takeover. Two mobile network companies by the names, 02 and 3 are about to merge. The result is that only one company emerges after the merging process. The two companies would no longer be separate entities. A new name would come up to represent the merged firms. A take-over occurs to occur because three is set buy 02 at an agreed price of £10.25bn.
The impact of take-overs in a firm is evident once the merger occurs. The result of the take-over is a single and stronger business entity as compared to the initial two companies. The new company after the take-over has the advantage of economies of scale. A take-over results to a larger and more productive firm in terms of output. A large scale of operation of that firm then means that there is a decreasing cost per every cost of output. The formed firm has more capital base as compared to how they were as single separate entities. Merging of two companies results in a wider market since customers to both merging firms are loyal. A wider market then leads to the achievement of greater profits. Availability of profits in a business leaves enough capital to carry out research and improve on running the firm efficiently.

Williston Suffers after a Downward Plunge in Oil Prices

The last six months have experienced a drastic drop in oil prices to $50 or less from the initial $110 a barrel in Williston. During the past four to five years, Williston boomed due to its oil supply. Population doubled to 35000, from the initial 15,000, and there was an influx of oil companies in the area. During the boom season, those who were here first became rich not to mention rent, which rose significantly. As a result, the value of land increased by a fourfold. The current fall in oil prices is a surprise to many people. As a consequence, retrenchment is becoming common in Williston. Ill companies have announced layoffs of its employees. A good example was Baker Hughes Company, which intends to cut 7,000 workers in 2015.
The town of Williston has experienced a turn of events. It was mainly dependent on oil rigging to keep it thriving.When the city came up, oil priced ranged at $110 a barrel. The town grew very fast due to its richness in oil deposits. Oil Companies sprang up, and buildings increased in number by the day. Employment opportunities increased, and the earnings were attractive to all. The sudden fall in oil prices to $50 a barrel has changed things drastically. The once booming town of Willington is slowly becoming a ghost town.People have left for greener pastures elsewhere. The effects of this change in price are quite evident. The number of layoffs has increased significantly, as a result.
The sudden fall in price of oil has led to a number of severe outcomes. Laying-off of employees occurs due to less demand for the oil. The number of working hours has also reduced by a significant margin. Workers have also been retrenched to cope with the current harsh economic status.Land that had increased in value by four times has now lost its value significantly. Businesses like restaurants have shut down due to lack of customers and buildings have experienced losses because of unpaid rents. The occupants of Williston are now a handful after many have left for their homes.The fall in oil price is a big blow to Williston town.

Astonish, a Bradford Cleaning Company, Widens its Market

Bradford is a place known for housing many manufacturing industries.Bradford houses a fast growing firm, Astonish. The company specializes in kitchen cleaners, which it sell to customers worldwide. The firm has 72 employees, and it makes 70 cleaning goods and more in Bradford’s outskirts. The firm has a global market of 60 countries and more, the Middle East and China included, not to mention its local market in the UK. Astonish ensures that they make great products and sell them at affordable prices that have made it prominent among consumers. Recently the signing of a new deal occurred which is to ensure the sale of its products in 112 sample outlets and another 250 B&Q stores.
Astonish company has widened its market over the years from a local market to an international one. Their quality of products always has impressed consumers leading to an ever-growing market. A wider market has then led to higher profits for the firm, which helps it to expand its wings even further. The company has employed techniques such as door-to-door services to introduce its products to the market. Marketing of their products also happens in other countries, which has led to the use of the company’s product all over the world. China is an example of international consumers of the products.
The making of high-quality products and efficient advertising techniques has led to the growth of Astonish Company. The result is increased profits, which translates to availability of capital to expand the business. Market for the products has also widened from a local market to an international one because of efficient marketing skills. The business is now becoming a major threat to fellow competitors due to its wide market base. A firm that produces high-quality products and then sells them well is destined to be a successful one. Astonish company now considers expanding the business to meet the increasing demand.

Summary

The business world is very diverse, and a lot can happen in the course of running an enterprise. Stiff competition may lead to one firm buying -off a fellow competitor, a known as take-over. The competing firms merge to form an even stronger team to counter the competition. A take-over occurs to related businesses, and the aim is to reduce competition as highlighted in the article Mobile Network 3 to Buy 02 in a £10bn Deal.In the second article it is highlighted that a successful firm may also crush all of a sudden if its product is negatively affected. Oil companies may suffer if, for instance, the price of petroleum reduces drastically. Thousands would lose jobs and any business enterprise depending on these firms is affected. It is, for this reason, hazardous for a firm to be dependent on another for its success. The reason is that if the independent firm falls, the dependent firms will fall as well. Astonish, a Bradford Cleaning Company, Widens its Market on the other hand shows how a firm that produces high-quality products should expect to make many sales. Consumers are like good products as compared to bogus ones. A firm that wishes to have a broad market should produce the best of goods and use proper marketing skills. The outcome is a very successful business with large profits to show for it. These are just but a few examples of what goes on business.

Conclusion

The three articles capture various scenarios that occur in the business world. In the first article, the issue of takeovers is tackled. Mobile network Three to buy 02 in a £10bn deal dwells on the efforts of Li Ka-Shing, an Asian tycoon, to make a takeover for 02 mobile company. The takeover was mainly brought about by the need for Li Ka-Shing’s Mobile Network 3to penetrate into the vibrant UK market tapping in the competencies of O2 mobile company. The next article Williston Suffers after a Downward Plunge in Oil Prices focuses the issues of price drop in the oil market. The drop of the oil prices as shown in the second article has the negating side of rendering the industry non-profitable. It also translates to reduced job opportunities for many individuals relying on the oil industry as illustrated in the case of the oil-rich Williston-town. In the third case, Astonish, a Bradford cleaning company, widens its market, provides the story of how fusing quality and expertise equates to more revenues and positive reviews from the market. The article focuses on the Bradford based company that has managed to overtake its local status to become a global force reckoned in over 60 countries due its excellence in the kitchenware cleaning industry.

Work Cited

Anderson, E.” Astonish widens its market.” The Telegraph 7 Feb 2015
Egendorf, Laura K. Advertising. Farmington Hills, MI: Greenhaven Press, 2006
Foster, Peters.” Williston suffers after a downward plunge in oil prices.” The Telegraph 8 Feb 2015
Morgan, Mark I. “Executing Your Business Transformation: How to Engage Sweeping Change Without Killing Yourself or Your Business”. San Francisco, CA: Jossey-Bass, 2010. Internet resource.
Ranking, Jennifer. "Mobile network Three to buy O2 in £10bn deal." The Guardian23 Jan. 2015: n. pag. Print..

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