Essays on Changes in the Business Environment - British America Tobacco Annotated Bibliography

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The paper "Changes in the Business Environment - British America Tobacco " is a great example of a micro and macroeconomic annotated bibliography. British America Tobacco has sweetened the offer and bought a stake in Reynolds American at an amount of $49 billion and this would result in the creation of a tobacco giant which would have a significant and noteworthy presence in the globe. The agreements have been reached three months after the first offer. The purchase results in the globe's largest publically traded tobacco company when evaluated in terms of net sales.

The merger has also occurred when the industry is experiencing a shift as there is the development of next-generation products. The second article deals with airlines and competition seems to be stiff in this industry and thus every airline is responding and changing so as to compete favorably with the other competitors in the industry and for them to gain a competitive advantage. Companies such as American Airlines and United Airlines have joined Delta Airlines in announcing plans for the basic economy option and this option is mainly targeting bargain travelers.

The third article deals with the Brexit economy. Britain finally voted that they need to leave the EU and this seems to be finally be feeding on the economy of the UK and this is a result of the rising inflation which is offsetting the brisk trade for a great number of the businesses. Brexit has had a number of positive and negatives impacts on Britain with some of them being inflation, low hiring rates, and rise in house prices just to mention a few of them. Article 1: Bray, 2017, ‘ British American Tobacco to Take over Reynolds American in $49 Billion deal’ The New York Times, 17 January, viewed 3 March 2017, https: //www. nytimes. com/2017/01/17/business/dealbook/british-american-tobacco-reynolds-cigarettes-merger. html? _r=1 In evaluating the merger between British America Tobacco and Reynolds American the merger can be termed as a horizontal merger.

This is based on the fact that the two companies operate in the same space and they acted as competitors to each other since they offered similar goods to the consumers. A major factor that can be said to have contributed to the merger is that competitors seem to be higher and as a result, the synergies, as well as the potential gains in the market, can be greater when merges take place between the companies involved (Mankiw 2014).  

References

Allen, K 2016, ‘Brexit economy: inflation surge shows impact of vote finally beginning to bite’, The Guardian, 21 December, viewed 3March 2017, https://www.theguardian.com/business/2016/dec/21/brexit-economy-referendum-inflation-uk-2017

Bray, 2017, ‘British American Tobacco to Take over Reynolds American in $49 Billion deal’ The New York Times, 17 January, viewed 3March 2017, https://www.nytimes.com/2017/01/17/business/dealbook/british-american-tobacco-reynolds-cigarettes-merger.html?_r=1

Creswell, J 2017, ‘Fewer Niceties, Similar Price: Airlines Turn to ‘Basic Economy’ Fares’, 23 February, viewed 3March 2017, https://www.nytimes.com/2017/02/23/business/airlines-basic-economy-fares.html

Mankiw, G 2014, Principles of Economics, South-Western College Publishers, United Kingdom.

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