Question

On the Edge Oracle and PeopleSoft Oracle Corporation makes extremely complicated and large customized software programs...

On the Edge
Oracle and PeopleSoft
Oracle Corporation makes extremely complicated and large customized software programs that can support thousands of simultaneous users and that are capable of administering the personnel records and financial records of very large businesses (called enterprise software). PeopleSoft and SAP were the only two other major competitors making such massive enterprise software. Oracle held 18 percent of the market in customized software capable of handling the personnel records of very large businesses, SAP held 29 percent, and PeopleSoft held 51.5 percent. Moreover, Oracle held 17 percent, SAP held 39 percent, and PeopleSoft held 31 percent of the market for customized software capable of managing the financial records of very large businesses. On June 6, 2003, Oracle attempted a hostile takeover of PeopleSoft by offering to buy PeopleSoft’s shares for $5.1 billion, or $16 a share. PeopleSoft’s board of directors rejected Oracle’s offer, and on June 18 Oracle raised its bid to $6.3 billion, or $19.50 per share. Then, on February 4, 2004, Oracle raised its offer to $9.4 billion, or $26 per share. PeopleSoft stock was by then selling for $22 a share, and its board rejected the new offer. PeopleSoft also passed a “poison pill” provision by promising customers cash refunds of up to five times what they paid for their software if PeopleSoft were taken over by another company.
On February 26, 2004, the U.S. Department of Justice (DOJ) sued to block Oracle’s bid, claiming the takeover would reduce the market’s competitors from three to two and “such a reduction in competition is likely to result in higher prices, less innovation, and decreased support” for large business customers. Oracle challenged the government’s definition of the “enterprise software market” as too narrow and asserted that if the market was defined as the market for all “business software,” then there were many dozens of companies competing in the market and not just three. Moreover, Oracle claimed, large companies such as Microsoft planned to enter the enterprise software market, and, anyway, large customers could negotiate low prices even when there were only two competing sellers in a market. On September 9, 2004, the court ruled in Oracle’s favor against the DOJ, and Oracle shortly acquired PeopleSoft.

a. Does an Oracle takeover of Peoplesoft leave the market too concentrated?

b. Do large companies do more good than bad?

Homework Answers

Answer #1
  1. As there will be increase in the extent of domination of sales by an Oracle takeover of Peoplesoft thus leaving the market too concentrated. In other words, Oracle takeover of Peoplesoft will account for its relatively large fraction of the market leaving it too concentrated.
  2. Though the corporations are liable for growing inequalities and environmental degradation but it is due to corporations that countries are rapidly increasing their economies which in turn aids in creating strong educational systems and highly skilled workforces and as well help in the job creations/opportunities for the educated youth. And looking at the present scenario developed societies are benefited by the corporations and are winners but developing societies are experiencing corporate exploitation and are thus losers.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In 2013 senior managers at Alibaba, China’s largest e-commerce enterprise, decided that it was time to...
In 2013 senior managers at Alibaba, China’s largest e-commerce enterprise, decided that it was time to take the company public and offer its shares for sale to retail and institutional investors. Alibaba was founded in 1999 by a former English teacher, Jack Ma, with just $60,000 in capital. Often described as a fusion of Amazon and eBay, by 2013 Alibaba was already the world’s largest online e-commerce company. In 2012, transactions at its online sites totaled $248 billion, more than...
DRIVING ARI FLEET MANAGEMENT WITH REAL-TIME ANALYTICS Automotive Resources International, better known as simple ARI, is...
DRIVING ARI FLEET MANAGEMENT WITH REAL-TIME ANALYTICS Automotive Resources International, better known as simple ARI, is the world's largest privately-held company for vehicle fleet management services. ARI is headquartered in Mt. Laurel, New Jersey and has 2,500 employees and offices throughout North America, Europe, the UK and Hong Kong. The company manages more than 1,000,000 vehicles in the US, Canada, Mexico, Puerto Rico and Europe. Businesses that need vehicles for shipments (trucks, vans, cars, ships, and rail cars) may choose...
The Business Case for Agility “The battle is not always to the strongest, nor the race...
The Business Case for Agility “The battle is not always to the strongest, nor the race to the swiftest, but that’s the way to bet ’em!”  —C. Morgan Cofer In This Chapter This chapter discusses the business case for Agility, presenting six benefits for teams and the enterprise. It also describes a financial model that shows why incremental development works. Takeaways Agility is not just about the team. There are product-management, project-management, and technical issues beyond the team’s control. Lean-Agile provides...
Pandora is the Internet’s most successful subscription radio service. As of June 2013, it had over...
Pandora is the Internet’s most successful subscription radio service. As of June 2013, it had over 200 million registered users (140 million of which access the service via a mobile device) and over 70 million active listeners. Pandora now accounts for more than 70% of all Internet radio listening hours and a 7% share of total U.S. radio listening (both traditional and Internet). At Pandora, users select a genre of music based on a favorite musician, and a computer algorithm...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons for the failure and how did the breakdown harm Nike? 2. What are the important elements to be kept in mind while implementing a new system in an organization? What is the importance of a good working relationship between partners and the sharing of responsibility in implementing critical projects? What mistakes did Nike and i2 make? 3. comment on the lessons learned and the...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest retailer, both in terms of the number of stores (8,970 worldwide in 2011) and the level of sales ($419 billion from the 2011 Annual Report). By pushing suppliers to continually reduce costs, Wal-Mart is known for pursuing low prices and the stores often attract customers solely in-terested in lower prices. With Wal-Mart’s expansion into groceries, the company has be-come the largest retail grocer in...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s largest and most successful retailer, with $487.5 billion in 2014 sales and nearly 11,000 stores worldwide, including more than 4,000 in the United States. Walmart has 2.2 million employees and ranks first on the Fortune 500 list of companies. Walmart had such a large and powerful selling machine that it really didn’t have any serious competitors—until now. Today, Walmart’s greatest threat is Amazon.com, often...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
After reading the following article, how would you summarize it? What conclusions can be made about...
After reading the following article, how would you summarize it? What conclusions can be made about Amazon? Case 12: Amazon.com Inc.: Retailing Giant to High-Tech Player? (Internet Companies) Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July 1994, and sold its first book in July 1995. In May 1997, Amazon (AMZN) completed its initial public offering and its common stock was listed on the NASDAQ Global Select Market. Amazon quickly...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT