Dell’s potential Guinness World Record
The Dell Inc. computer technology company has announced its intent to acquire the enterprise software and storage company EMC Corp. for about $67 billion, which would represent the largest acquisition in the history of the technology industry. Being one of the world’s largest computer storage companies, EMC will help Dell reach its new target customers in the course of becoming an end-to-end solution provider. Though Dell started as a simple personal computer manufacturer, it has shifted toward providing computer solutions to small and medium-size businesses and enterprises in the last decade. Hence, Dell is not entirely new to the service industry and, with the merge of the two world’s leading technology franchises, they now want to target customers from industries such as health care, education and the military.
Dell started as a personal computer building company, setting an example for supply chain efficiency with inventory levels of four days or less. However, customer demand has shifted from customized personal computers (shipments dropped 7.7% compared to last year) toward mobile computing with short delivery times. Therefore, in its pursuit of success in the entirely new market, the company now has to undergo some changes.
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Alibaba’s Singles’ Day generates $9 billion
The Alibaba Group Holding Ltd. wants to open additional offices in the U.S., Italy, France and Germany. As China’s biggest e-commerce operator, the company is seeking expansion on the global market. In the last few years, the Singles’ Day on Nov. 11th, trademarked by the company, has quickly grown to become China’s busiest shopping promotion of the year. The Internet is flooded with sales promotions and discounts, inevitably resembling an online version of America’s Black Friday. In 2014, Singles’ Day generated $9 billion in revenues and the company now seeks global merchants to sell quality goods to the country’s growing middle class. After managing to bring Macy’s online store to China this year, the company now tries to include international brands like L’Oreal and Apple, promoting the import of goods.
The Alibaba Group is now under a lot of pressure to ensure the same level of growth as in the previous years, especially to convince potential stock traders in America. Another big contribution to this year’s expansion is the inclusion of about 100,000 actual brick-and-mortar stores throughout China.
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Anheuser-Busch InBev swallows SABMiller
Anheuser-Busch InBev has agreed to buy SAB Miller for $104 billion which will make it the largest beer manufacturer by far. This also represents the largest beer deal ever made and is one of the top five acquisitions of all time. AB InBev’s product lineup will then include nine out of the 20 most sold beers worldwide, with well-known brands like Budweiser, Grolsch, Leffe and Pilsner Urquell.
As one of SAB Miller’s biggest shareholders, Altria, a U.S. based cigarette maker, has pushed SAB Miller’s board toward making the deal in the past, and after turning down at least four previous offers, they have now succeeded. Regulators will now have to take a closer look at the deal because it will put the company in control of about a third of global beer production. This may very well result in too much influence in key markets and extended control over beer prices all over the world.
Since young consumers turn toward craft beer nowadays, many think this deal represents a drastic market defense strategy. However both companies have acquired several independent breweries in the last years and already have craft beers in their lineup.
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Global Economy influences National Military
Peter Picone from Massachusetts has been sentenced to over three years in prison after knowingly selling counterfeit electronic parts to be used in building a nuclear-powered submarine to the U.S. military. This was not a single case: An investigation by the Senate Armed Services Committee, started in 2011, has found a total of 1,800 cases of counterfeits within the defense supply chain over a two-year period. Picone is now the second person to be convicted under a new law, which is aimed at cleaning up the supply chain. The first convict, Hao Yang, sentenced last year, has also sold counterfeit goods as legitimate merchandise. In addition, a case of supplying unapproved computer chips for a military helicopter is currently under investigation. All cases involve a considerable amount of counterfeit parts produced in China and Hong Kong.
The measurements under the new law are aimed at applying harsher penalties, while at the same time focusing on finding people involved in dealing with counterfeit military parts.
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Have a great weekend!
