...1 A Mercury pode ser considerada um bom target para a AGI como pode também ser considerada um mau target para a aquisição. Esta aquisição pode ser vista como positiva na medida em que permite obter sinergias entre as duas empresas, beneficiar de economias de escala, aumentar a capacidade negocial da empresa para com os seus clientes e para com os fornecedores e diversificar a carteira de produtos, pois as duas empresas apesar de actuarem no mesmo sector tem consumidores e produtos diferenciados, o que permite diversificar o risco com a fusão. Assim, se após a fusão se conseguir sinergias operacionais e financeiras na empresa, o que permite diminuir custos e obter ganhos na produção e distribuição dos produtos e se a empresa conseguir maior capacidade negocial que permita estabelecer contractos mais vantajosos junto dos fornecedores e dos clientes a aquisição da Mercury por parte da AGI será benéfica para a empresa. Esta aquisição pode ser vista como negativa na medida em que as empresas apresentam resultados muito diferentes entre si, bem como culturas próprias, o que leva a que após a aquisição a empresa não apresente o desempenho desejado. Uma dessas diferenças é a taxa de crescimento das vendas, que apresenta valores muito diferentes entre as duas empresas. Outra diferença que pode ser apontada é a do ciclo de produção, que se reflecte na gestão de stocks. As duas empresas apresentam saldos médios de stocks muito diferentes, sendo que a AGI apresentava um valor...
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...HINDALCO - NOVELIS ACQUISITION: CREATING AN ALUMINIUM GLOBAL GIANT AUTHORS INFORMATION: NAME : 1. AMAN SRIVASTAVA, Assistant Professor, Jaipuria Institute of Management, Noida, asrivastava@jimnoida.ac.in 2. RAKESH GUPTA, Associate Professor, IILM, Greater Noida, guptark123@rediffmail.com ABSTRACT HINDALCO - NOVELIS ACQUISITION: CREATING AN ALUMINIUM GLOBAL GIANT Last decade witnessed growing appetite for takeovers by Indian corporate across the globe as a part of their inorganic growth strategy. In this chain Indian aluminium giant Hindalco acquired Atlanta based company Novelis Inc, a world leader in aluminium rolling and flat-rolled aluminium products. Hindalco Industries Ltd., acquired Novelis Inc. to gain sheet mills that supply can makers and car companies. Strategically, the acquisition of Novelis takes Hindalco onto the global stage as the leader in downstream aluminium rolled products. The transaction makes Hindalco the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as being India's leading copper producer. The case study attempts to analyze the financial and strategic implications of this acquisition for the shareholders of HINDALCO. The case explains the acquisition deal in detail and highlights the benefits of the deal for both the companies. Followings are the main issues to be discussed for critical review of this case: What is the strategic rational for this acquisition...
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...Taylor Adams Dr. E. Montgomery BUS 508 Contemporary Business 02/14/2014 Mergers and Acquisitions When Proctor and Gamble acquired Gillette Products in 2005, Warren Buffet stated “This was a dream deal, this acquisition would create the greatest consumer products company in the world”. (Englishe, 2011) This is one reason why P&G chose to take on the major brand. Other than being known for their razors, Gillette’s products include Duracell batteries, Oral-B, and Braun. This acquisition meant Proctor and Gamble would take much control over the grocery market shelves. Control was everything to P&G at the time of this acquisition. P&G opened a huge door for Gillette, a door that looked inviting to shareholders. Gillette would now be invited into new markets such as China and Japan. China and Japan were two fast growing grocer markets. While this was a great end of the deal for Gillette, P&G would benefit greatly as well. Gillette housed products that were selling and evolving in the market faster than the brand itself. These were the type of acquisitions P&G needed to remain at the top of the product chain, and open the eyes of its competitors. (Englishe, 2011) Proctor and Gamble, the “signed partnership agreement” that formed in 1837 between William Proctor and James Gamble, was making money from the very beginning of its existence. Gamble, began in the large business venture as William Proctor’s protégé, in already existing soap and candle factory...
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...Trident University Module 5- SLP FIN501 Dr. Glenn Tenney Jeremy Stack Net present Value, Mergers and acquisitions When brainstorming on the possible ideas of mergers or acquisitions it was easy at first to automatically think similar corporations within the same market either small or big or even in direct competition. Upon researching and reviewing the required readings I realized there are numerous types of mergers and acquisitions that could and should be considered in the terms of better business for my company (Target), for the market, and for the consumers in general. The Target Corporation is an American retailing company. It is the second largest discount retailer behind Walmart. With that being said it would at first be a natural thought maybe to think of a merger with Walmart, but as Target being second to them it wouldn’t necessarily be a merger as it would be an acquisition by Walmart and probably wouldn’t make the most business sense even if both were allowed to remain as separate entities. Beyond that certain regulatory bodies would probably find a merger or acquisition to constitute a monopoly and threaten competition within the respective industry. So what would be a company worth merging with or acquiring? One such company that comes to mind which I believe would be considered a Horizontal merger would be the Kmart Corporation as they are in direct competition. Kmart is listed as the 3rd largest discount retail chain behind Walmart and Target...
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...BOMBARDIER TRANSPORTATION AND THE ADTRANZ AQUISITION CASE ANALYSIS Prepared by: Samuel C. Anyanwu Date of Submission: February 17, 2015. Submitted to: Prof Dr. Kelly Thompson. Bombardier Inc. (BBD) had over the years built a well diversified and versatile business in order to reduce cyclical risk, ensure long term survival and redefine the company’s position on a global scale. The route taken to achieve this level of diversification was through strategic acquisition of key players in the industry that complimented BBD’s vast business ventures. BBD’s growth philosophy was to seek acquisitions that enabled the company to apply exiting competencies without focusing solely on financial gains but more on how acquired companies would complement and strengthen its existing businesses. BBD’s philosophy also centered around being patient to bring about seamless integration of acquired companies with the aim of eliminating waste and turning around underperforming assets through its application of effective and efficient management approaches. [ (BOMBARDIER & ADTRANZ AQUISITION CASE) ] BBDs kin approach to integration of acquired companies enabled greater combination potential as this approach brought about strong employee support because there was the belief that BBD would protect jobs and invest in new product lines. BBD’s approach to integration was seen in the acquiring of Adtranz despite the fact that the company agreed to a limited due diligence process for the deal...
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...Mexico Global growth through IT innovations and aggressive aquisition strategy “Wouldn't it be great to strike back in Spain and take control of its cement sector five hundred years after the Spaniards conquered Mexico?” Lorenzo Zambrano CEO of CEMEX, 1992 CEMEX aquired the two largest Spanish cement producers Hiring “High Potential People“ In reality young and inexperienced people willing to work insane hours to achieve financial goals Cost reduction by 30% 1997 The most admired company in Spain, Actualidad Economica Case study in transforming low tech enterprise into a model of info age efficiency Streamlining Management Reducing peak hour Energy Use Introducing alternative Fuels Automation of all Plants Reduction of Inventory levels 1989 Anti Dumping Duty imposed by International Trade Commision, 58% on all Mexican cement imports Acquisition Institutionalize acquisition process, refine post-aquisition integration strategy Innovation 1988 CEMEXNet first Mexican Company to own its own satelite communications network Today Links all global operations Detailed live access to financial data, truck routs, operational data from all individual plants 2003 Wired Magazine 5th Masters of innovation, technology, and strategic vision CEMEX overcame this burden by importing cement in to the United States from third parties from other nations than Mexico CEMEX sends post-merger integration teams (PMI) to analyze and improve operations PMI...
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...services company with operations around the world. Currently, Wells Fargo is the fourth largest bank in the United States by assets and the second largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home mortgage servicing, and debit card. Overall, Wells Fargo is the 23rd largest company. Wells Fargo has been a company for over a century. It was first established by Henry Wells and William Fargo in 1852. The company was initially providing services to California. Since then, they have grown to be what they are today. Wells Fargo has had a lot of acquisitions. Most were very minor, but some were big mergers. These big mergers include the acquisitions of California-based Wells Fargo & Company by Minneapolis-based Norwest Corporation in 1998 and the 2008 acquisition of Charlotte, NC-based Wachovia. Since the aquisition, the company transferried its headquarters to San Francisco. Since then, Wells Fargo has grown to be known as one of the biggest, and one of the friendlist banks in the United States. In 2010, Wells Fargo had 6,335 retail branches (called stores by Wells Fargo), 12,000 HYPERLINK "http://en.wikipedia.org/wiki/Automated_teller_machines" automated teller machines, 280,000 employees and over 70 million customers. Wells Fargo operates stores and ATMs under the Wells Fargo and HYPERLINK "http://en.wikipedia.org/wiki/Wachovia" Wachovia names. Wells Fargo is considered one of the “Big Four banks” of the United States along with Bank of...
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...delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. (About SouthWest). I believe by striving to do so and keeping their customers Southwest has able to maintain its dominance in the airline industry. In fact in 2015 per Forbes Magazine Southwest was ranked 7 in the World’s Most Admired company list (Southwest Airlines 2015). Furthermore, Southwest always manages to bag the top most rank for Customer service by the US Department of Transportation. In May 2011, Southwest completed the acquisition of AirTran Holdings Inc. as a result of this acquisition of Southwest was able to further increase its ability to spread more low fares to more consumers, it experienced a significant domestic network expansion, this merger in 2011, then rivaled the world’s biggest airline United/Continental in its passenger carrying capacity. (AirTran- Acquistion, 2011). Southwest operates more than 3,600 flights a day, serving 95 destinations across the United States and six additional countries. Southwest service to Belize City, Belize, begins in October 2015, and Liberia, Costa Rica, in November 2015, Southwest is committed to...
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...Designer Fragrances Active Cosmetics: • La Roche-Posay • Vichy • Innéov Source: www.loreal.de Dezember 2005 Internationales Marketing Ann-Christin, Daniela, Marina, Michaela 4 2 Positioning of L‘ORÉAL brands High Quality Luxury Active & Professional Consumer Low Price High Price Low Quality Dezember 2005 Internationales Marketing Ann-Christin, Daniela, Marina, Michaela 5 Ansoff Matrix Market Product Present New Present Market Penetration Market Development New Product Development Diversification Dezember 2005 Internationales Marketing Ann-Christin, Daniela, Marina, Michaela Source: Kotler 6 3 7 W A Y S New Competitive Areas New industry structure McKinsey Growth Pyramid Aquisitions Joint Venturess I N C New geographies A C H IE V IN G Existing products to new customers Exixting products to existing markets Dezember 2005 New products & services New delivery approaches R E A S HOW? Minority Stakes...
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...MERGERS & ACQUISITIONS WITH RESPECT TO ORGANIZATIONAL CULTURE INTRODUCTION 1. Mergers and acquisitions have often come in waves of activity that were motivated by different factors. Further 1890 to 1905, more than 200 mergers of major importance occurred as many small companies in the same industries merged to form monopolistic entities. After 1905, merger activity was particularly heavy during the 1920s as small companies in similar industries continued to merge to gain market power. According sources, the capacity of merger activity was also heavy after World War II as large companies completed friendly acquisitions of small privately held companies. Another large wave of mergers occurred in the 1960s and 1970s, motivated largely by the quest for risk reduction through diversification. 2. Investopedia explains “Mergers and Acquisitions – M & A” as general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed (investopedia.com, 2013). 3. M & A and corporate restructuring are a vital part of the corporate financial world. According to Ben McClure everyday Wall Street investment bankers arrange M & A transactions, which bring separate companies together to transform into large ones. 4. Furthermore describing on Mergers and Acquisitions, two terms separately. Mergers: two similar-sized firms are combined –...
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...industry that has turned into a price war. This reduces the margins and drives out profitability. Curently the industry is consolidating (mergers and aqusitions), but it does not relieve the presure and the competition with lower price goes on. • The industry is dependant on 2 large supplyers. Most probably they are avere of this situation and use it but grabing the bigger share of profits generated by pagers, by seting prices for the devices higher than they could with more competitors around. The cost of paging devices tied up cash in paging service companies, causing them to look for means of financing for that and that results in large interest expense and depreciation. • The case describes the cellular phone service industry as harmless, but as a much younger industry it is already almoust the size of paging industry (34milj. Pagers, 32milj. Mobile phones). The pager is a complement product for cell phone, althought they both use similar technology. In case cellulars develop mesaging service the paging industry is facing a dead end, and the case states that cellulars are developing their technology. Arch seems to have above average performance in the industry that means they are fit enought to survive in the indutry and show good results. By showing these results Arch has managed to rise debt capital for the aquisitions it recently did and for investments in infrastructure they...
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...Sandeep K Krishnan In an ideal merger, the newly created entity pools the best features of the two merging organizations. A well planned process built on the foundations of an open, honest and consistent communication strategy can pave the way. Mergers and acquisitions have become a common phenomenon in recent times. A merger of the size like HP-Compaq has implications for the workforce of these companies across the globe. Although the merging entities give a great deal of importance to financial matters and the outcomes, HR issues are the most neglected ones. Ironically studies show that most of the mergers fail to bring out the desired outcomes due to people related issues. The uncertainty brought out by poorly managed HR issues in mergers and acquisitions have been the major reason for these failures. The human resource issues in the mergers and acquisitions (M&A) can be classified in two phases the pre-merger phase and the post merger phase. Literature provides ample evidence of difference in between the human resource activities in the two stages: the pre-acquisition and post acquisition period. Due diligence is important in the first phase while integration issues take the front seat in the later. The pre acquisition period involves an assessment of the cultural and organizational differences, which will include the organizational cultures, role of leaders in the organization, life cycle of the organization, and the management styles. The mergers often prove to be traumatic...
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...Sandeep K Krishnan In an ideal merger, the newly created entity pools the best features of the two merging organizations. A well planned process built on the foundations of an open, honest and consistent communication strategy can pave the way. Mergers and acquisitions have become a common phenomenon in recent times. A merger of the size like HP-Compaq has implications for the workforce of these companies across the globe. Although the merging entities give a great deal of importance to financial matters and the outcomes, HR issues are the most neglected ones. Ironically studies show that most of the mergers fail to bring out the desired outcomes due to people related issues. The uncertainty brought out by poorly managed HR issues in mergers and acquisitions have been the major reason for these failures. The human resource issues in the mergers and acquisitions (M&A) can be classified in two phases the pre-merger phase and the post merger phase. Literature provides ample evidence of difference in between the human resource activities in the two stages: the pre-acquisition and post acquisition period. Due diligence is important in the first phase while integration issues take the front seat in the later. The pre acquisition period involves an assessment of the cultural and organizational differences, which will include the organizational cultures, role of leaders in the organization, life cycle of the organization, and the management styles. The mergers often prove to be traumatic...
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...A Crew Member's View of Arby's, Inc. by Tavis X. Crayk In this paper I will be discussing my current employer, Arby's restaurant chain. I will cover a brief history of the company including its current business enivornment, the management structure, the operational and financial issues that I see as an employee of the company, and finally any potential changes that I see in Arby's future. As the low man on the totem pole of this fast food chain, I believe I have a unique perspective of the company. The goal of this paper is to provide that view to the reader. A subsidiary of Triarc Companies, Inc., Arby's Inc. is a leading global fast-food restaurant chain with more than 3,400 restaurants worldwide. Arby's is seperated in the fast-food industry by its menu, which features roast beef sandwiches. The chain expanded rapidly during the 1970s and 1980s by franchising. In 2014 the Arby's chain celebrated its 50th anniversary, and its corporate website currently boasts over $3 billion in system wide sales. Arby's brand originated from the brainstorm of brothers Leroy and Forrest Raffel. The Raffels operated a food-service equipment business in Youngstown, Ohio, in the early 1960s, and noticed the boom taking place in the fast-food industry. It had been only about ten years since Ray Kroc had purchased the national rights to franchise the McDonald hamburger operation, and Burger King was already jumping into the franchising game using a similar version of the...
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...Ştefania Academia de Studii Economice Bucureşti, PiaŃa Romană nr.6, Sector 1, Bucureşti, +4021 319 19 00, Ramona.puia@man.ase.ro In this article the authors make an abstract of the main human resources strategies, presenting them in relation with the global strategy of the organisation. The accent falls on resourcing strategy, one of the main sources of competitive advantage. Resourcing strategy is not just about recruitment and selection. It is concerned with any means available to meet the needs of the firm for certain skills and behaviours. A strategy to enlarge the skill base may start with recruitment and selection but would also extend into learning and development programmes to enhance skills and methods of rewarding people for the aquisition of extra skills. These statements want to emphasise the strong links between different human resource strategies. Key words: strategic management, human resources, resoucing strategy, skills. The last years’ research proved that the main priority of organisation strategy and strategic management is to secure a long-term future of the company. It is certain that such a purpose you can not achieve by practicing a bad human resource management and not take into consideration the strategic role of human resources. The human factors are critical when implementing a different organisational strategy, as people are usually change resistant. The performance of the company is possible only if products and services are made available at the right...
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