...THE EFFECT OF MERGER AND ACQUSITION ON ORGANISATIONAL PERFORMANCE. (A case study of Equity Indemnity Insurance Co. Ltd) CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF THE STUDY Every organisation is set up with a vision to be profitably productive so that the interest of every stakeholder is satisfied; consequently the performance of every organisation is graded on various performance parameters to determine how well the company is doing when compared with its set goals and the performance of other companies. The following are areas of expectation of good performance. o The organisation’s vision objective and associated plan – how much of this is seen in reality of the organ’s operation / result. o The organisation’s structure, values and culture – which are what, distinguish one organisation from the other even though they are in same market/industry. o The sector and market in which the organisation operates and the organisation’s share of the market. o The organisation’s competitive strength this being able to take more share of the market and determine price movement. o The financial strength and investment potential of the organ to venture into new areas/ development of existing market and pelt. Many organisations have had problems in driving the above fully to the advantage of their organisation hence have consistently not improve in their performance when assessed by the stakeholders in the organisation. The Annual General Meeting...
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...FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION MNEs, JVs, and M&As Osho Aquila Adeolu Student number: 2302887 Mergers and Acquisitions, Case Study: JP Morgan Chase &Co Oulu Business School 2013 1 Table of Contents 1 INTRODUCTION ............................................................................................................................... 2 2 HISTORY AND THE M&A PROCESS ............................................................................................. 3 2.1 History .......................................................................................................................................... 3 2.2 The M&A process ......................................................................................................................... 3 3 MOTIVES OF M&A ........................................................................................................................... 5 3.1 Challenges and human side during the merger process ................................................................ 6 3.2 Strategy used by JP Morgan Chase in solving some challenges ................................................... 7 3.3 The success factor of JP Morgan Chase Merger ........................................................................... 8 4 CONCLUSIONS................................................................................................................................ 10 References ................................
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...MERGER & ACQUSITION IN TELECOM SECTOR OF INDIA Ashish Agnihotri Bhaven Chheda Dipesh Jain Harsh Chauhan Tejashree Bole Zececa Mehta Sector Overview Indian Telecom Industry Total telecom subscribers 325.79 million (June 2009) Tele density 28.33 per cent (June 2008) Quarterly addition of mobile subscribers (April June 2008) 25.80 million Telecom subscribers annual growth rate (2007 08) 44.79% One of the biggest telecom markets in the world Average Revenue Per User (ARPU) for GSM (June2008) US$ 5.6 Indian Telecom Industry More GSM subscribers than fixed line subscribers Telecom equipment market (2007 08) US$ 23,699 million Handset market (2007 08) US$ 5,962 million Expected mobile subscriber base (2010) About 500 million (i.e., more than one phone for every household) It witnessed a CAGR of approximately 29% from 2002 03 to 2007 08. The CAGR is expected to stabilise at 16% between 2007 08 and 2009 10. India An Ideal Investment Destination The large untapped potential in India s rural markets revealed by 9.21 per cent tele density in rural markets as compared to the national level of 28%. The government promoting telecom manufacturing by providing tax sops and establishing telecom-specific Special Economic Zones. Major Players Vodafone-Hutch Deal In Feburary 2007, Vodafone has bagged the 67% Hutch Telecom International (HTIL) stake in Hutch-Essar at an enterprise value of $19.3 billion Income Tax (I-T) department notice...
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...Understanding mergers and acquisitions in the health care industry has evolved over the years. Health care has become increasingly complex and expensive. It is becoming a multi-trillion dollar industry worldwide. The topic of this research paper; the impact of mergers and acquisitions have in health care from a variety of viewpoints. The paper will discuss the multiple impacts in an effort to better understand mergers and acquisitions and what it means to the health care organizations culture, services, workers, and the patients they serve. What is Organization Culture? The organizational culture is not spoken of in an organization but felt on an everyday basis. The culture is defined by what is expected of people and what is valued. Culture defines the norms of behavior and how things are done in an organization. For an organization to be successful it must understand the culture which allows the organization to be productive. Culture defines the boundaries of behavior and performance which is the way of getting things done within the organization. Cultures are often developed early on in the organization and over time these experiences become the “rules and regulations” of the organization. Once a merger or acquisition is completed, the rules and regulations become something of the past (Eikenberry, 2006). The rules and regulations could have served one organization well; it will not work so well once a merger has been completed. When two organizations become one in a merger, the...
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...DUE DILIGENCE MERGER & ACQUISITION BF 2 Wu Yuan (Leo) PRESIDENT UNIVERSITY Definition of Due Diligence Due Diligence term often we read or hear from the media business and law. Suppose the investor will perform due diligence process to the individual/ specific company before deciding to invest. Due diligence is the process of investigation or survey conducted by a party to the other party prior to the signing of the contract of force cooperation among all parties. This process is not a requirement of the law but it is voluntary. But it is really important to do for the sake of prudence prior cooperation or decisions taken into problems later on. Due diligence is a term used for the investigation to the company's performance appraisal or a person, or the performance of an activity to meet the specified standards. The term of this due diligence can be used in showing an assessment of the observance of the law, but the term is generally used to indicate a voluntary investigation activities. Some common examples of the "due diligence" in this example include: * A process of investigation in the implementation of a “business combination” (merger) of acquisition in which an interest in doing and assessment of the company to whom the purchase or appraisal of assets of the company. * An inquiry into the fulfillment of various criteria to the requirements in the certification process of a product or service (e.g. ISO, etc.) The term "due diligence" first came...
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...Cooper Industries’ Corporate Strategy I. Situation of the company Cooper Industries was the manufacturing company have the three group of business. The three group business are Electrical & Electronic, commercial & industrial, and compression & drilling. All this group had created growth in term of revenue by doing acquisition. Initially, Cooper was the recognized leader in pipeline compression equipment. However, the company had developed production expertise and had built a reputation for customer service in the natural gas industry as well as extracted gas from underground wells. Electrical and Electronic. The E & E segment was Cooper’s largest in 1988, generating one-half of corporate sales and 57% of operating profits. Cooper had entered this segment with the 1981 purchase of Crouse-hinds. By 1988, E&E had four sub-segments, each representing quite diverse business, but all focused on the mature North American market that accounted for over 90 percent of segment sales. Commercial and industrial. In the commercial and industrial segmen Cooper participated in the non-powered handtool and window treatment business, and in the automotive aftermarket. In the Tool group, consolidation of acquisitions was completed and new manufacturing of acquisitions was completed and new manufacturing facilities constructed by 1988, and the company held the preeminent market position in most of its tool lines. Compression, drilling and energy equipment Compression and drilling...
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...in India and Sri Lanka. The brand leads market share in terms of volume and value in India and has been accorded ‘super brand’ recognition in India. It also has a100% export oriented manufacturing unit of instant tea in the Indian state of Kerala which happens to be the largest such facility outside the US. Here is a brief history of the company: Tata Tea acquired Tetley in the first ever-leveraged buyout (LBO). This largest cross border acquisition by an Indian company made it the world’s 2nd biggest tea company with the combined turnover worth INR2800 – 2900 cr leading to its aggressive growth and worldwide expansion. The merger proved beneficial for Tata Tea as it slowed its main competitor (in India) HLL’s share (Hindustan Lever limited, a Unilever subsidiary), which was gaining a major market share. Tata Tea Before merger: Post merger Scenario: The right moves at the times Though Tata Tea ranks among the smaller of the Tata companies, yet it has been the most internationally active one. It made the world stand up and notice it when it acquired Tetley, a company nearly twice its size, in a risky leveraged buyout in 2000 Its second major highlight was when it acquired superior water maker Energy Brands Inc, USA (Glaceau) in 2006 that was the largest overseas acquisition by an Indian company at that time. It then sold its stake to The Coca-Cola Company nine months later, for almost double of what it had paid netting an impressive profit of over...
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...5/19/2012 Report By Omar Sheriff (52111617) | Ritsumeikan Asia Pacific University | Ritsumeikan Asia Pacific University | Strategic Analysis Report Hitachi LTD (4000 words) | 1.0 Introduction This report will conduct a strategic analysis report on Hitachi Ltd. On a famous advertistment (advertisement) about Hitachi’s smart cities and its social innovation business it suggests the following: “Even apart, we are connected. Even in absence we are still joined. Past and present connect! thus； we see the future. IT connects with infrastructure to link the world to bring better quality of life, urban planning, transport, electricity, industry, the enviroment, Hitachi’s expertise, its people, its technology are all at the service of society..... Hitachi inspires the Next ” (Hitachi, 2012) 2.0 Vision statement and report structure “The Hitachi Group is active in various fields ranging from social infrastructures to home appliances, materials, logistics, and services. Our goal is to seek constantly to breathe new life into the next era, an outlook expressed in our corporate slogan: “Inspire the Next.” We seek to become a vigorous company that will grow throughout the 21st century, contributing to society by helping to build comfort and prosperity” (Hitachi, Hitachi ltd, 2012). Above is an extract from a Hitachi advertisement derived from the Hitachi Smart city concept, that the company seems to be centrally pursuing in its global strategy via a strategy...
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...MSc International Business and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America characterized...
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...INTERNATIONAL BUSINESS/PBS 3043 SECTION 8 NAME : NO. ID NURUL AZIRA BT AZMAN PTM 120112407 NURUL FADIYANAH BT ZAHARI PTM 110711968 RAFIDAH BT MOHD RAZIF PTM 120112408 SAHIRA JU’AINI BT SALEHUDDIN PTM 110711879 ROZZE BT ZALI PTM 120112406 PREPARED FOR: MADAM NORHANINAH BT A.GANI CONTENT: JOINT VENTURE DEFINITION: An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation; also called a joint adventure. A joint venture is a contractual business undertaking between two or more parties. It is similar to a business partnership, with one key difference: a partnership generally involves an on-going, long-term business relationship, whereas a joint venture is based on a single business transaction. Individuals or companies choose to enter joint ventures in order to share strengths, minimize risks, and increase competitive advantages in the marketplace. Joint ventures can be distinct business units (a new business entity may be created for the joint venture) or collaborations between businesses. In collaboration, for example, a high-technology firm may contract with a manufacturer to bring its idea for a product to market; the former provides the know-how, the latter the means. All joint ventures are initiated by the parties' entering a contract or an agreement that specifies their mutual responsibilities...
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...MSc International Business and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America characterized...
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...w areHow companies are named? ABN AMRO- In the 1960s, the Nederlandse Handelmaatschappij (Dutch Trading Society; 1824) and the Twentsche Bank merged to form the Algemene Bank Nederland ( ABN; General Bank of the Netherlands). In 1966, the Amsterdamsche Bank and the Rotterdamsche Bank merged to form the Amro Bank. In 1991, ABNand Amro Bank merged to form ABN AMRO. Accenture- Accent on the Future. Greater-than 'accent' over the logo's t points forward towards the future. The name Accenture was proposed by a company employee in Norwayas part of a internal name finding process (BrandStorming). Prior to January 1, 2001 the company was called Andersen Consulting. Adidas- from the name of the founder Adolf (Adi) Dassler. Adobe- came from name of the river Adobe Creek that ran behind the houses of founders John Warnock and Chuck Geschke . AltaVista- Spanish for "high view". Amazon.com - Founder Jeff Bezos renamed the company to Amazon (from the earlier name of Cadabra.com) after the world's most voluminous river, the Amazon. He saw the potential for a larger volume of sales in an online bookstore as opposed to the then prevalent bookstores. (Alternative: It is said that Jeff Bezos named his book store Amazon simply to cash in on the popularity of Yahoo at the time. Yahoo listed entries alphabetically, and thus Amazon would always appear above its competitors in the relevant categories it was listed in.) AMD- Advanced Micro Devices. Apache- The name was chosen...
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...AB3601 STRATEGIC MANAGEMENT Course Outline Semester 1 of the Academic Year 2015-2016 Course Coordinator: Assoc Prof Tsui-Auch Lai Si Course Instructor for Groups 2, 5 and 5: Wan Chew Yoong Office: S3-1C-80 Tel: 67905651 email: acywan@ntu.edu.sg Course Description and Objective The Strategic Management Course focuses on identifying and understanding the sources of superior firm performance. This course introduces theoretical concepts and frameworks useful for analyzing the external and internal environment of the firm, and guiding the formulation and execution of different types of strategies. Strategic issues are examined from the perspective of a chief executive or general manager, focusing on how one can formulate effective strategies and develop the necessary resources and capabilities to achieve sustainable competitive advantage in a global and volatile competitive environment. Learning Goals At the end of this Course, students should be able to: synthesize information to recognize the external opportunities and threats as well as the internal strengths and weaknesses that impact a firm’s competitive advantage. critically evaluate how a business, corporate and/or international strategy would lead to sustainable competitive advantage. analyze complex and dynamic interdependencies among strategic issues. identify ethical issues and exhibit informed ethical judgment when faced with an ethical decision. Learning and Teaching Methods This course is structured...
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...House of Tata – Acquiring a Global Footprint Group 1 Bhuvan Bajaj Karan Bahl Raki Jain Trivikram Apte Vinayak Pareek Yan Yan Huang House of Tata – Acquiring a Global Footprint Executive Summary What and how did TATA emerge as a Multi Brand? Founded in 1868 by Jamshetji N. Tata as a trading firm Textiles in 1874 India’s first luxury hotel in 1903 First private steel company in 1907 First airline in 1932 First software firm in 1968 Liberalization of the Indian Economy and the changes that it brought to TATA’s way of doing business Ratan Tata becomes chairperson in 1991 • • First objective: Streamline group portfolio Some groups diversified and others organized around seven sectors 2 Major global expansions In 2000, Tata groups started internationalized operations and 65% of collective revenues were expected to come from outside India 1. Tata Consultancy ServicesWhy TCS, the group’s tech and consulting giant underwent its evolution at a much faster rate than the other Tata companies, in a sense became more global. And they perceived more growth in the foreign market and had to expand globally, TCS accounted for $27.8 billion of Tata’s $59.5 billion market capitalization as of August 2007 2. TitanExpanded globally but suffered high losses thus established itself as an NRI brand, especially in the Middle East. 3. Indian Hotels Company – TAJ Hotel Group Began globalization in 1982, Tata purchased 51 Buckingham gate and St. James court hotel which was later branded as...
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...ABL Organisation What type of organisation is ABL ? ABL is a publicly owned company listed on the Australian Stock Exchange. It commenced operations in 1937 being known as Australian Soft Drinks Limited. It has slowly grown through the different product segments that occur in the non-alcoholic beverage industry and in 1996 upon listing on the Stock exchange changed it’s name to the Australian Beverage Limited. What industry product segments does ABL operate in? ABL is the second largest company in the non-alcoholic beverage industry in Australia. Core activities include research and development of new products to the market, packaging innovation although not a strength at present, production, to product distribution and even assisting with retail sale of the products due to vending machines and other refrigeration retail options. Currently ABL operates in all of the major non-alcoholic beverage product segments except for bottled water. ABL also supplies to all areas of the retail market, the major of which are supermarkets and convenience stores. ABL apart from Vending machines does not operate directly at the retail end of the value chain. Current life cycle of ABL current industry? The current life cycle of the non-alcoholic beverage industry could be considered to be in the mature stage. NO turnover or production figures that would help back these figures up…. The majority of growth is driven by the healthy drinks with the push against CSD’s and childhood...
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