Essay Title: 

America Online Case Study

March 24, 2016 | Author: | Posted in management, mathematics and economics

Case : The Merger of AOL and Time Warner

2006

Case : The Merger of AOL and Time Warner

Case : The Merger of AOL and Time Warner

1 .1 Introduction

The maturity on communications and internet technologies has spawn a new model of the economy , bless economy . The jargon refers to the existence of cross-nations or even cross-continents trade , and commerce which enable a company to offer service . In internet era , companies must realize that Web is naturally global – when a company launches a Web site , it is accessible by a worldwide [banner_entry_middle]

audience

In to expand a company ‘s reach , executives at a company may take various policies such as exploring new market , developing new products and terminating unprofitable products , or conducting mergers and acquisitions to strengthen companies ‘ presence in a specific market

Concerning mergers and acquisition , there is an interesting fact that according to the Securities Data Company , the value of U .S (M A ) in 1996 alone reached a 27 percent increase to US 658 .8 billion from US 518 billion in 1995

Statement of the Problems and or Challenges (then now

The interesting part of the mega merger between AOL and Time Warner is whether the combined company can achieve the desired results as planned and what things that the new company needs improving in to sustain in both internet and entertainment business not only in the U .S . but also in the whole world

The two questions are valid since usually people , especially investors love to see mergers happening in business because of the combined revenue and profits that the new company may have . In case of AOL analysts reveal the merger will create a market capitalization of 350 billion and revenue up to 30 billion per annum (Johnson , 2000

Concerning the attractive potential of becoming a powerful company and the possible threats that haunt the new company , in this , we will discuss some issues about America Online (AOL , which have merged with media giant , Time Warner , several years ago , in January 2000 , to be precise . The discussion includes strategic planning , microenvironment Analysis , financial Background Information , analysis of the Industry SWOT analysis , and analysis of corporate objectives

Internal Analysis

Mission Statement

Mission statement is a company ‘s declaration that exhibits what action a company will do in o achieve the company ‘s goals . Considering the requirement of a good mission statement (Answer Corporation , 2006 ) says that a mission statement should be understandable , to the point , and not being verbose since vague mission statement can lead to different interpretation . In addition , mission statement should clearly explain what will be done , who perform the action , for whom , and why

Concerning AOL , in the company ‘s official website ( HYPERLINK “http /www .aol .com ” www .aol .com , there is a company ‘s mission statement as following

To build a global medium as central to people ‘s lives as the telephone or television .and even more valuable (AOL LLC , 2006 – Our Mission

The company further reveals that this mission… [banner_entry_footer]

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