...dealers in the Midwest. In 2008, Defender generated $150 million in revenues and ranked on the Inc. 500 list of America’s Fastest-Growing Companies (Pearson & Robinson, 2013, p. 9-2, para.2). Defender’s growth was attributed to using an aggressive direct-marketing focus and national expansion. Lindsey credited the Defender culture for the growth of the company; he believed that the talents of his leaders were the reason. He believed that taking care of his team members was what was needed to continually grow the business. With that he sent members of his team to seminars, conferences and self-help programs to increase enthusiasm, optimism and skills (Pearson & Robinson, 2013, p. 9-2, para.3). Things didn’t start out this way for Lindsey. He was challenged on a regular basis to evolve with the company from being a door-to-door-salesman all the way up the ladder to president and CEO. He also had challenges when it came to reinventing his relationship with the business when it grew as rapidly as it did over the course of 10 years. He had to reinvent the way he did business and he had to learn to release control in regards to his management philosophy. He needed to hire others on who in turn ended up becoming trusted employees who he turned over the reigns to in different leadership roles. Lindsey reinvented Defender’s business model...
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...Jean-Marie Le Corre 3 année – Promo 10 IBS – Case Preparation ème Pepsico’s Restaurants Pepsico is company that originated within the soft drink business with the famous Pepsi. The name PepsiCo appeared in 1965 when the Donald Kendall, former CEO of the company merged the soft drink company with Frito-Lay, a snack food company. Later many others businesses were added, mostly through external growth (PFS was added as a way reduce costs), among which are Pizza Hut, Taco Bell and KFC. A- SWOT Analysis Strengths Diversified yet complementary activities within the food business o Good outlets for distribution of Pepsi fountain sodas Allows more reactivity Highly decentralized organization o Large, while not complete, coverage of the restaurant industry Strong innovative spirit within the company Well segmented restaurant brands Internal movement of manager allows good experience sharing Weaknesses Strong resistance to higher management control o Makes it difficult to answer some new demand of the market such as single PepsiCo’s contact Independence of businesses makes it difficult to put synergies in place Group operates competitors to its potential customers o Burger king, for example is a potential customer for Pepsi, but a competitor to PespiCo’s restaurants No shared and established strategy within the brand, just based on a good practice agreement Lack of cooperation between brands (The Toilet Paper victory) Opportunities Drive more synergies between brands Share general...
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...to a competitor, US Corp. Its subsidiary, Canadian Wallboard, and Stonewall will merge into one organization. What are the benefits of the merger to British Wallboard? US Corp? Canadian Wallboard? Stonewall? (10 marks) The benefits of the merger to British Wallboard: Financial Benefits: The benefit to British Wallboard of the sale and subsequent merger is not having losses from poor market conditions for Stonewall Industries. British Wallboard may recognize some tax benefits from the sale of Stonewall Industries. The benefits of the merger to US Corp: Strategic Benefits: US Corp will benefit from the merger strategically by leveraging current customers of Stonewall Industries. As Canadian Wallboard is assumed to only operate in Canada similar to Stonewall Industries there is no benefit to opening in new markets internationally, or corporate venturing. Unless of course there is an international market – in which case having a larger presence in the Canadian market may make it more feasible to venture into the international markets. Becoming a larger more efficient company with a strengthening competitive position opens up the opportunity for more mergers and acquisitions of competitors, suppliers and/or customers. US Corp will benefit from operating synergies from combining the two companies. This could be realized by the costs saved due to economies of scale, the spreading of overhead, the increased specialization of labour and management, and the more efficient...
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...Merger Integration: Delivering on the Promise A Series of Viewpoints on Mergers, Acquisitions, and Integration Executive Summary From airlines to automobiles to advertising, the urge to merge has escalated steadily over the past decade. In 2000 alone there were 9,472 merger and acquisition transactions in the United States — a new record. Although this rush to the altar may have been grounded in solid synergistic potential, all too many of these marriages quickly faltered. Booz •Allen & Hamilton recently conducted a study of deals that closed in 1997 and 1998 and discovered that 53 percent of the deals had failed to deliver their expected results. Although senior executives devote exhaustive hours to striking the right deal, it is merely the beginning of the long and tortuous merger integration process. In fact, structuring a deal is relatively easy; implementing one is nothing short of heroic. As an executive presiding over a newly merged company, you are inundated with competing priorities and demands. But the most important questions before you are these: • How do you deliver on the value you promised shareholders and investors while simultaneously “keeping the wheels on the business”? • In the wake of a merger, how do you successfully integrate operations while maintaining your focus on customers? Although no one-size-fits-all formula can apply to every company’s unique situation, in our experience four principles are the key to success in merger...
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...DIVERSIFICATION: Savoir-Relier TM INTRODUCTION 1/2 The Walt Disney Company has been created in 1923 and has grown by doing well in almost all of its activities and mostly due to diversification. It is today a group worth $ 25B with an average 10-year ROE of 15%, largely superior to other players in the industry (but still inferior to the 20% objective settled by Eisner when named CEO of the company). Used to taking risks, Disney is present in more sectors than any other of its direct competitors, excelling them (first top 6 positions for theme parks even though entry is more expensive than other parks; first 24 positions for top grossing animated films; top market share in domestic box office since1994; Most watched TV Show in 19992000 with Who wants to be a millionaire). But is this a sustainable scenario? INTRODUCTION 2/2 Disney Stock Performance vs SP500 350% 300% o Total assets grown steadily from 2.4 billion in 1983 to 45 billion in 2000, which also confirms the constant growing / diversification across years. A huge investment step occurred in 1996: from 15 to 37 billion - acquisition ABC ($19B) 250% 200% 150% 100% 50% 0% -50% o From 1996 – company didn’t attain the expected 20%/year ROE (decreased from 11% to 4% from 1983 to 1997) o Stabilization of operating margin, ROA and ROE while developing activities (increased revenue & net income, increase of assets) o In 1998 and 1999, the situation worsens internet failure (portal and subscription service)...
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...DEFINITION OF MERGER * The definition of merger in general and in finance can be stated as follows: In General, "Merger is an absorption of one or more companies by a single existing company." In Finance, "Merger is an act or process of purchasing equity shares (ownership shares) of one or more companies by a single existing company." * The combination of one or more corporations, LLCs, or other business entities into a single business entity; the joining of two or more companies to achieve greater efficiencies of scale and productivity. * The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. MEANING OF MERGER Before we understand, What is Merger? First, let's find out the simple meaning of an acquiring company and acquired companies. Acquiring company is a single existing company that purchases the majority of equity shares of one or more companies. Acquired companies are those companies that surrender the majority of their equity shares to an acquiring company. Merger is a technique of business growth. It is not treated as a business combination. Merger is done on a permanent basis. Generally, it is done between two companies. However, it can also be done among more than two companies. During merger, an acquiring company and acquired companies come together to decide and execute a merger agreement between them. After merger, acquiring...
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...Elizabeth Anderson Journal# 10 Professor Jordan Section 3 Covey: Covey’s fifth habit is: Seek First to Understand, Then to be Understood. He talks about the importance of communication and what he calls “empathetic listening” saying that most people listen with the intent to reply. When we listen we listen on one of four levels (ignoring, pretending, selective listening, or attentive listening) and very few people practice this highest form of listening which is empathetic listening. Empathic listening is effective when you have the best interest of the other in mind, if you genuinely seek the welfare of the others. This can be applied to real life in regards to effective parenting techniques. In an episode of Everybody Loves Raymond called “Father Knows Least” Raymond and his wife sign up for a Parenting class where they learn about active listening. In this clip he practices these techniques with his daughter Allie in order to try to get through to her about her bad behavior. Here, he tries to see her perspective, he relates to her, and makes eye contact and appropriate body gestures. http://www.youtube.com/watch?v=4VOubVB4CTU I can apply this to my own life by trying to remember that I will actually be more effective if I put forth the extra effort to listen and engage and empathize with who I am speaking to, whether I want to or not. People will look up to me and respect me more if they feel like I genuinely care about them. Another thing that stuck out...
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...Tough Times Best Practices of Leading M&A Teams ADVISORY Doing Deals in Tough Times 1 Tough Times Ahead Although 2007 was a record-setting year for global mergers and acquisitions (M&A), the current credit market suggests that conditions will become significantly more challenging for acquirers in the immediate future. Banks and other financial institutions have been particularly hard hit –analysts estimate that sub prime losses could reach $400 billion, and with their balance sheets in disarray, banks have not been eager to fund new transactions. Investor’s Business Daily estimates that sponsor deal volume will fall 30 percent in 2008 and strategic deals will fall 10 percent. Because of these conditions, lenders are now imposing tougher hurdles on dealmakers and forcing them to better articulate and justify their future expected cash flows. Of course, even in tough times companies will continue to make acquisitions. However, today’s difficult financial environment will put added pressure on companies to succeed. Companies that are fortunate enough to finance their deals will understand that they have a smaller margin of error. Managers who are relying on new synergies will find themselves racing against the clock to prove that their value proposition is real and to satisfy the terms being enforced by lenders. In addition, the softer economic times will further challenge acquirers to capture new revenue synergies, which will place more importance on faster...
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...out of 10 companies planned to make at least one acquisition in 2012, significantly higher than 2011. In the first six months of 2012, the number of corporate’ Mergers & Acquisitions deals jumped to nearly 5,900, up from about 5,100 in the first six months of 2011. However, the high rate of failure of Mergers & Acquisitions deals, coupled with a still-sputtering economy, has begun to weigh on corporate leaders, financial executives and boards of directors. Companies and their financial leaders should not forego acquisitions, but should forego handling them so poorly. The Boston Consulting Group examined organizations with sustained strategies of growth through acquisitions. Analyzing about 700 large U.S. public companies over a 10-year period, the study found that companies that focused on and made acquisitions achieved the highest shareholder returns, outperformed companies that solely focused on organic growth, created more value for shareholders and grew market share more quickly than their competitors. Like Cisco Systems Inc. has for many years pursued a strategy of growth through acquisition. The Boeing Co. and General Electric Co. are two other leading global companies that have prioritized acquisitions, business partnerships and other joint ventures as key elements of their growth strategies. Reasons for failure of acquisition * FINANCIAL ENGINEERING ISSUES Various assumptions are made relating to revenue and cost synergies, however...
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...technological capability in the invention and manufacture of glass products supported by a strong Technical Staffs Division (R&D). It was competing through product differentiation and growing profitably (average of 10% per year) without substantial competitive pressures through premium prices of government military contracts and specialized products for OEMs. Most divisions maintained relatively small sales departments with few salespeople servicing the small number of important accounts. Many of the divisions had limited marketing efforts. The corporation operated like a relatively close-knit family; people interacted informally. Besides, Technical Staff Division (R&D) was regarded as very important by top management; growth was linked to technology. However, by the end of the 80’s, the demands of the industry began to change to a fast paced price sensitive computer, telecommunications and consumer electronics commercial market, therefore, pressures from the dynamic new market required Allentown to be a lower cost producer to be competitive. Sales of the Electronics Products Division (EDP) started to stagnate and operational margin decreased dramatically. The división had recently been restructured in their business units by their new leader Don Rogers and lack of synergy between the business units in the development of new product extensions was threatening the growth and profitability of EPD and Allentown as a...
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...“Renault-Nissan Alliance” Case Report "I pledge on my honor that I have not given or received any unauthorized assistance on this assignment/ examination." 1.What are the strategic reasons for the Renault-Nissan alliance? Strategic alliances are voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services (Rothaermal 244). The most common reasons firms enter into strategic alliances are – * To strengthen competitive position * To enter new markets * To hedge against uncertainty * To access critical complementary assets * To learn new capabilities (Rothaermal 245). The Renault-Nissan alliance was not an exception to the aforementioned reasons. In the late 1990s, Nissan was falling apart, with consistent drop in its auto sales and poor returns. It had been losing market share for 27 years in the Japanese market and by 1999 it had about $20 billion in debts. Analysts attributed Nissan’s bland styling, infrequent model changes, high manufacturing and parts costs, and bureaucratic decision-making to its poor performance. At the time when Nissan was looking for somebody to bail them out of their financials crisis and put the on the profits, Renault came to their rescue. Renault was a maker of small- to medium-size cars with consistent, but slim profit margins. It sold 85% of its automobiles in Western Europe with third of them in France. Renault had...
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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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...were important. Disney’s philosophy was to create universal timeless family entertainment and believed in the importance of family life maintaining its adherence to the Disney formula for family recreation. The company believed and always aimed to provide an experience that the families would be able to participate in and take joy in together and always with a commitment to excellent in all facets of the business. When Eisner took over the company’s financial performance had deteriorated. Disney was incurring heavy costs trying to complete projects on time i.e. EPCOT center and Euro Disney and the Disney Channel. He viewed “managing creativity” as Disney’s most distinctive corporate skill and pursued with the development of synergy through vertical integration. With this philosophy, Eisner inspired and managed Disney. Disney mushroomed with Eisner’s extreme corporate vision which he targeted at an annual revenue growth target and return on stockholders’ equity exceeding 20%. He met and exceeded this target for many years at the helm of Disney as their Chairman and Chief Executive Officer. Eisner turned Disney around from a company on the downward slope back on the incline of enormous success. Some of Disney’s numerous business lines included the following: 1 – Theme Parks – The first of the many Disney theme...
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...1.0 Introduction The Apprentice is a reality television show that originated in the United States on NBC. Billed as "The Ultimate Job Interview", the show depicts a group of 15-18 businessmen and -women competing in an elimination-style competition for a one-year, $250,000 job of running one of real estate magnate Donald Trump's companies. The show led Trump to become known for his fateful catch phrase "You're Fired!". The apprentice season 5, the fifth series of the Apprentice with Donald Trump as the executive producer and host, is not much different from the earlier seasons except for the debut of Donald Trump's children, Ivanka Trump and Donald Trump, Jr. as boardroom judges when either George or Carolyn were unavailable. Amidst all the drama associated with each and every season of The Apprentice, there is much to be learnt about leadership from the 16 competing candidates in Season 5. In order to have a better understanding of the diverse characters and their behaviour and to give a more objective analysis on whether they displayed effective leadership or otherwise, it is necessary to look at some of the theories underlying leadership behaviour. Below is the candidates’ group picture, Source: http://www.realitytvworld.com/news/nbc-reveals-donald-trump-the-apprentice-5-contestants-3948.php Below is the candidates’ background, Source: www.wikipedia.com 2.0 Leadership Anaylsis of Season 5 Apprentice 1.Traits Theories The Myers Briggs Type Indicator...
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... 2. 2.1 Executive Summary.................................................................................................... 2 The Theory Underlying Groups and Teams................................................................ 3 Gibson, Ivancevich, Donnelly, Konopaske.......................................................3 Groups............................................................................................................... 3 Teams................................................................................................................ 4 2.1.1 2.1.2 2.2 Stephen P. Robbins.........................................................................................4 Groups............................................................................................................... 4 Teams................................................................................................................ 5 2.2.1 2.2.2 2.3 Jones, George, Hill ..........................................................................................7 Groups, Teams and Organisational Effectiveness............................................. 7 Groups and Teams as Performance Enhancers................................................ 7 2.3.1 2.3.2 3. 3.1 3.2 3.3 4. 4.1 4.2 Is this a Mature Work Group or Team?....................................................................... 8 Stages of Group Development .............................................................
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