...of Opus CMC to tap into its capabilities in high-end mortgage BPO, and Genpact’s acquisition of Triumph Engineering to bolster engineering capabilities • Manage cash reserves more effectively to meet shareholders’ expectations • Capture opportunities from client divestitures of services assets; examples include Cognizant’s acquisition of ING’s and CoreLogic’s captives, TCS’ and Wipro’s acquisition of Citigroup’s captives, and Tech Mahindra’s acquisition of Hutch BPO Done well, M&A strategies can help Indian players tap into $2 billion to $4 billion in revenues each year. Yet, about 70 percent of mergers fail to create value, as the consolidated companies receive a one-time revenue uplift but miss powerful opportunities to create revenue synergies. This paper takes a closer look at the Indian IT-BPO industry’s M&A track record and explores how to harness the power of consolidation to create more value. M&A as the Preferred Growth Strategy Mergers and acquisitions are taking place at...
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...Managing diversity at workplace: A case study of HP Summary: Introduction: In recent era of globalization workforce diversity have increased the complexity of job. The term diversity is defined by different authors in different ways. In this study the author has discussed different perspectives of this term and approaches used by Hewlet Packard to manage diversity. The study is divided into six sections: 1. Overview of HP 2. Different dimensions of diversity management 3. Strategies perused by managers to embrace diversity 4. Strategies used by HP to handle diversity 5. Paradigms of diversity management 6. Suggestions and conclusion Overview of HP: HP is founded by Bill Hewlet and Dave Packard on 1st January, 1939 with headquarters in California. HP initiates its diversity management policy from the very beginning and introduced “open corporate culture” accompanied by a new management style known as “management by walking around” this kind of management style has never been introduced in large organizations before. As HP operates in more than 120 countries with employees of 172000, it is easy to understand the presence of multicultural workforce in the company. This diversity has no doubt increased the complexity for managers to manage diversity. Diversity management and its dimensions: In this study the author defines diversity as difference among team members in terms of gender, age, race, ethnicity, religion, nationality or other dimensions...
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...TABLE OF CONTENTS EXECUTIVE SUMMARY 3 MERGERS & ACQUISITIONS 4 DISTINCTION BETWEEN MERGERS AND ACQUISITIONS 5 TYPES OF MERGERS AND ACQUISITONS 7 Horizontal Merger 7 Vertical Merger 7 Co-Generic Merger 7 Conglomerate Merger 7 RECENT EXAMPLES 8 REASONS FOR MERGERS AND ACQUISITIONS 10 Growth of the company 10 Synergy 10 Diversification and expansion 11 Elimination of competition 11 × REASONS WHY MERGERS AND ACQUISITONS CAN FAIL 12 No common vision 12 Weak leadership and poor governance 12 Poor strategic fit 12 Cultural and Social Differences 13 Incomplete and Inadequate Due Diligence 13 Poorly Managed Integration 13 Overpaying the target company 13 Changing market condition 13 ARTICLE STATING REALITIES OF M&A for HR 14 SUCCESS MANTRA for M & As 15 Cultural integration 15 Change Management 16 Management resources 16 Role of HR in M&A’s 18 Three Stage Model of Mergers and Acquisitions 21 Stage 1-Pre-Combination (HR Issues): 21 Stage 2-Combination and Integration (HR Issues): 22 Stage 3: Solidification and Assessment (HR Issues): 22 Role of the HR Department in M&A Activity 23 INDUSTRY EXAMPLE – Schnieder 26 Challenges due to acquisitions 26 Industry Example – MTS 29 Conclusions 30 At the Company Level 30 At the HR Level 31 REFERENCES 33 EXECUTIVE SUMMARY Mergers and acquisitions, as a means of rejuvenating and restoring business, have become increasingly popular...
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...Introduction: Ever since the concept of globalization has come into existence, the studies of cultural differences, dimensions and attitudes have began to take place and different scientists and observers started coming out with their own set of discoveries and observations (McGregor, 2004). The main reason behind cultural difference and dimensions started when workers of different countries started working together on unified projects and conflicts started arising between the people of different races and culture (Kotler, 2008). Keeping in view of such situations, Dutch Sociologist Gerard Hofstede came up with a study named as Geert Hofstede’s Cultural Dimensions in which he laid stress upon five aspects naming Power Distance Index, Individualism, Masculinity, Uncertainty avoidance index and Long term Orientation. The case study in this paper focuses more towards the cultural difference between employees of Disneyland that are located in different countries. Using Hofstede’s 4 culture dimension, highlighting main cultural differences between United States and France: Disneyland is an American Idea of a theme park which serves as a recreational place for children and families. This theme park originally started from Anaheim, California (United States) and later on after receiving massive response from visitors all around the globe, the directors of the company started off with opening similar type of theme parks with the same name of Disneyland in Orlando (US), Tokyo (Japan)...
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...History of the Deal: Before we begin to understand as to how the deal was arrived at, it is important to look at the relevant challenges surrounding. We have broadly divided these challenges into two categories – External and Internal. External Challenges These are the challenges, that Tata Tea, and to some extent Tetley Tea were facing as far as the Tea Industry was concerned. • There was an increased level of competition, and it didn’t look like it was going to reduce anytime soon. Some of the African countries such as Kenya were fast increasing Tea Production, and exporting them. The quality of this tea was good enough to compete with the Premium that Indian Tea once commanded. • The consumption patterns were changing, and it was not good for both Tata Tea, and Tetley Tea. Russia had been a prominent importer of Indian Tea in the past, but steadily it had reduced its imports from India drastically. The Tea Consumption in UK, Ireland etc. had been reducing drastically. This was not good news for the British Giant Tetley Tea. Trends in Tea Consumption in developed countries were not encouraging wither. • Due to Supply-Demand disparity in favour of Supply (Supply being more than demand), the prices of Tea were falling globally. Even though India had around 30% share in the Tea Market around 1995, due to diversity available in the variants of Tea, it could not control the global Tea prices. Internal Challenges These are the challenges looked at from the point of view...
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...Table of Contents 1. Introduction 2. Typology of mergers兼并 3. Reasons to acquire收购companies 4. Integration process 5. Quantifying定量the value of an acquisition收购 Typology of mergers & acquisitions Different forms of acquisitions: One possibility is literally字面意思to merge the two companies, in which case one company automatically自动assumes all the assets and all the liabilities of the other Such a merger must receive the approval许可of at least 50% of the shareholders of each firm An alternative选择性is simply to buy the seller's stocks in exchange for cash, shares or other securities 证劵 In which case the acquirer收购方will deal individually单独with the shareholders of the selling company A third approach is to buy some or all of the seller's assets In this case, ownership of the assets need to be transferred and payment is made to the selling firm rather than directly to its shareholders Merger accounting If company A buys company B at a market value which is superior to its book value, company A paid a premium Company A will show in its consolidated accounts an amount of goodwill equivalent to the premium paid Typology of mergers & acquisitions Merger Accounting The premium can be justified by a licence not valued in company B balance sheet or a promising product or technology Company A will be obliged each year to estimate the fair value of the goodwill and if it falls below the premium, the amount on the balance sheet must be adjusted downward...
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...Mergers and acquisition Introduction Mergers and acquisitions refer to the business strategy involved with combining, buying and selling of companies. Mergers and acquisitions are done mainly for value creation for shareholders. When a company acquires or purchases another company that is called acquisition and when two companies combine together as single new company, it is called a merger. This essay is intended to present an overall idea of mergers and acquisitions. First part of essay will cover types and concept of mergers in brief and second part will elaborate the concept of acquisition and intentions which may cause the acquisitions. Lastly, a conclusion on the basis of the study will be presented. Mergers Merger is "voluntary amalgamation of two firms on roughly equal terms into one new legal entity." (BusinessDictionary.com). From business structural perspective, following are the types of mergers. When two companies are in direct competition and share the same product line, their merger is called horizontal merger e.g Diahatsu Cuore. A supplier’s and a company’s merger is called vertical merger. e.g wood supplier and furniture maker. When two companies have no common business areas, their merger is called conglomeration. e.g a chain of restaurants with a chain of schools. Mergers are always backed by beneficiary intentions which are ultimately for value creation for shareholders. Economies of scale could be attained by a merger. Joint organizations have...
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...Mergers and acquisition Introduction Mergers and acquisitions refer to the business strategy involved with combining, buying and selling of companies. Mergers and acquisitions are done mainly for value creation for shareholders. When a company acquires or purchases another company that is called acquisition and when two companies combine together as single new company, it is called a merger. This essay is intended to present an overall idea of mergers and acquisitions. First part of essay will cover types and concept of mergers in brief and second part will elaborate the concept of acquisition and intentions which may cause the acquisitions. Lastly, a conclusion on the basis of the study will be presented. Mergers Merger is "voluntary amalgamation of two firms on roughly equal terms into one new legal entity." (BusinessDictionary.com). From business structural perspective, following are the types of mergers. When two companies are in direct competition and share the same product line, their merger is called horizontal merger e.g Diahatsu Cuore. A supplier’s and a company’s merger is called vertical merger. e.g wood supplier and furniture maker. When two companies have no common business areas, their merger is called conglomeration. e.g a chain of restaurants with a chain of schools. Mergers are always backed by beneficiary intentions which are ultimately for value creation for shareholders. Economies of scale could be attained by a merger. Joint organizations have...
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...Travis McPhail MGMT 4390 Spring 2015 Dr. Jones Case Analysis: DaimlerChrysler In the case “DaimlerChrysler: Post-Merger News”, DaimlerChrysler is facing the strategic issue of figuring out how to bring together the two cultural differences between Daimler-Benz AG and the Chrysler Corporation that would create a positive and profitable synergy for DaimlerChrysler as a whole, while regaining stockholders trust. As the post-merger integration process accelerates, they need to identify opportunities to increase sales, reduce purchasing costs, and create new markets for DaimlerChrysler. DaimlerChrysler internal environment, the company went through many changes post-merger. Starting with the creation of the “Dream Team” in 1998, resignations of key members of the dream team led to a two-tiered board system: the supervisory board and the board of management. There was apparent unrest among top executives and a growing chasm between the Americans and Germans due to differences in management styles, processes, cultures and work styles. DaimlerChrysler implemented a variety of exchange programs designed to help the two companies meld an understanding of the cultural differences between the two and their respective countries. They created the Automotive Council, which allowed the sharing of innovation, knowledge, technologies and ideas between the two companies to drive future product integration. They also created the Executive Automotive Committee (EAC) which worked towards...
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...Challenges facing the Music Industry As Albert Moran puts it, “film is an economic commodity as well as a cultural good” (Albert Moran, 1996) and therefore, the struggle to dominate the market for films and music has continued for such a long time. These cultural products because of the industrial processes they follow of production, distribution and consumption fall into the category of an industry and are immensely affected by the forces of the market. Distribution is the key factor in determining who would rule the industry as it forms the link between the production of the media goods and their exposure to the target audience. Over the years the cultural industry has evolved imbibing newer technologies and making space for newer companies to make their mark. This process of evolution has been intercepted with changes in its economic and sociological structure owing to the external economic, social and political factors and also technological advancements. Ownership of the media forces to a great extent amounts to a huge control over the global economy and also means greater political and cultural power. Hesmondhalgh, in his book, The Cultural Industries, points out that there has been an "interweaving of change and continuity" in the cultural industry since the 1970s (Hesmondhalgh, 2007). However, this hasn’t ever been a smooth process for the older and established companies who had to face challenges from the new market players. The music industry had to grow from the...
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...modest market share, Geely has shifted its focus on technology in order to differentiate from the steep competition. Its competitive positioning is being in transition from low price advantage to technological advantage, with the objective to rapidly expand domestically and internationally. Why did Geely acquire Volvo? What are some of the merger integration challenges Geely faces, and how should they be addressed? There is very little overlap between Geely and Volvo in nearly all aspects of doing business – target market segment, brand positioning, corporate culture, cost structure, technology use and others. In light of common M&A failures due to cultural misfit and failed integration effort, the Volvo-Geely integration sounds particularly challenging. From first glance, the acquisition doesn’t reveal an obvious synergy potential. However, there is...
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...in an optimize way. Carlos Bruehler, appointed to lead that merger mandated a a top management team to develop and implement the strategic plan. The newly formed team was a mix of representatives from both families as well as others, with lower interaction with local practices and culture (e.g expatriate from Switzerlan). Carlos expected to move at the same speed as other mergers, where the aggressive and fast pace built the success of Holcim. Although the decision to buil the senior management team around a good reprentation of key families and interests, it would have made sence to consider the cultural aspect and local specifities of Argenitan, historically used to work in a “family” mode, and siloed. As such expecting that newly formed team to provide a coherent, well though and consistent execution strategy raised concerns and risks. I would have considered that local cultural specificities...
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...Explain. LVMH is a world leader in luxury products and services with a portfolio of over 50 prestigious brands. Brands under the conglomerate operate in the areas of: Wines and spirits, perfumes and cosmetics, fashion and leather goods, watches and jewelry, etc. LVMH manages a large portfolio; but ensures that there is consistency in marketing each of these brands. Although there exists product diversification, LVMH tries to create synergies in order to integrate each of these businesses with the parent brand. LVMH has stressed on the importance of quality, and in turn creating a heritage brand, by facilitating innovation in each independent brand as the driver of its growth and profitability. LVMH has developed several distinctive resources and capabilities that allow its brands to have competitive advantages: * Central advertising service thereby reducing the cost of an advertising campaign performed by a single company by more than 20%. * Support international development using the experience of administrative and legal support; local cultural awareness; pre-established commercial relationships; real estate knowledge, and leverage, for store openings; * Financial and legal services through FX hedging, accounting services, legal, tax and financing activities. For small brands the most important was access to capital; * Learning organization with access to corporate knowledge through seminars, informal networks and adoption of best practices and...
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...MANAGING CULTURAL INTEGRATION IN CROSS-BORDER MERGERS AND ACQUISITIONS Daniel R. Denison, Bryan Adkins and Ashley M. Guidroz ABSTRACT Cross-border M&A has become one of the leading approaches for firms to gain access to global markets. Yet there has been little progress in the research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture differences. In this chapter we review the literature on cultural integration in cross-border M&A and provide a framework designed to help manage the integration process throughout the M&A lifecycle. This framework presents culture assessment and integration as a crucial component to reducing poor culture-fit as a barrier to M&A success. Mergers and acquisitions (M&A) have become a central part of most corporate growth strategies, and an increasing portion of that M&A activity now spans national borders. Indeed, beyond a certain scale, one might say that all M&A is now cross-border M&A. For example, even a merger Advances in Global Leadership, Volume 6, 95–115 Copyright r 2011 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 1535-1203/doi:10.1108/S1535-1203(2011)0000006008 95 96 DANIEL R. DENISON ET AL. between two large...
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...MANAGING CULTURAL INTEGRATION IN CROSS-BORDER MERGERS AND ACQUISITIONS Daniel R. Denison, Bryan Adkins and Ashley M. Guidroz ABSTRACT Cross-border M&A has become one of the leading approaches for firms to gain access to global markets. Yet there has been little progress in the research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture differences. In this chapter we review the literature on cultural integration in cross-border M&A and provide a framework designed to help manage the integration process throughout the M&A lifecycle. This framework presents culture assessment and integration as a crucial component to reducing poor culture-fit as a barrier to M&A success. Mergers and acquisitions (M&A) have become a central part of most corporate growth strategies, and an increasing portion of that M&A activity now spans national borders. Indeed, beyond a certain scale, one might say that all M&A is now cross-border M&A. For example, even a merger Advances in Global Leadership, Volume 6, 95–115 Copyright r 2011 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 1535-1203/doi:10.1108/S1535-1203(2011)0000006008 95 96 DANIEL R. DENISON ET AL. between...
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