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United and Continental Airline Merger

Research the United and Continental Airline merger, evaluate the challenges experienced during the merger and the resulting impact to the business.

Assess the effect of mergers and acquisitions on the company's customers, employees, and shareholders, and determine how what has been learned can be applied to companies doing acquisitions and mergers in the future.

Evaluate the effectiveness of Grupo Modelo's growth strategy for Corona to become the number-one imported beer in the U.S.

Discuss how Corona can sustain its position as one of the most desirable imported beers in the U.S. marketplace given the competitiveness of the beer market.

Solution Preview

Based on your research of the United and Continental Airline merger, evaluate the challenges experienced during the merger and the resulting impact to the business.

Mergers of any kind are a challenge. They involve merging operations, cultures, overcoming government obstacles, and creating synergies that leverage the legacy company's strengths. The merger between Continental and United would be considered a horizontal merger. These two companies were in the same industry and the combination of the two companies was supposed to offer value-added benefits to the customer. Shared resources, increased routes, modernized planes that included wireless Internet, and lower costs were supposed to be among the benefits to be gained by customers. Mergers don't always work that way. While Continental had a reputation for above average customer service, United was on the opposite end of the spectrum.

A survey by Fortune magazine shows United as one of the most admired companies but this survey polled industry professionals. A poll taken by consumer research company The Temkin Group had United as one of the worse companies in customer service. Two methodologies regarding customers didn't help ease the transition from two companies into one. Combining operations is another challenge the company faced as well. Continental had a pet friendly ...

Solution Summary

The United and Continental Airline Merger are examined.

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