Published online by Cambridge University Press: 19 January 2010
If we review the finance section of any newspaper, we are bound to find news about changing business structures (merging, downsizing, acquisition or expansion), or changes in the way things are done or organizations are managed (implementing new technologies, flattening of hierarchies, standardization of production based on quality criteria, etc.). These past few years have been particularly prolific in terms of business mergers and takeovers. According to market analysts Thomson Financial, the value of business mergers and takeovers in 2006 totaled 3.79 billion dollars, representing an increase of 38 percent compared to 2005. To give some examples, the pharmaceutical multinational Pfizer is to close several research centers and factories around the world, laying off nearly 10,000 workers as a reaction to the increased competition from new pharmaceutical companies offering generic alternatives. As for business takeovers, there are the examples of Google's takeover of YouTube or AT&T's of BellSouth. Everything suggests that 2007 and 2008 will be particularly busy in terms of business mergers and takeovers in key economic sectors, such as electricity in Europe (ENEL and Endesa or Suez-Gaz de France), or the car industry worldwide. In short, changing business patterns in strategic sectors of the economy, caused by pressure on organizations to adapt to changing market demands, has accelerated sharply in recent years as a result of globalization and market competition.
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