With Reference to Your Own Research and the Item Above, Do You Think That Takeovers and Mergers Inevitably Improve the Performance of the Businesses Involved? Justify Your Answer.

In: Business and Management

Submitted By Cdavies
Words 1388
Pages 6
Takeovers and mergers are complex transactions where many things can go wrong and therefore affect the success or failure of the deal. Integration planning is an important part of the takeover process, although there are other potentially significant factors that affect whether a takeover is successful which also need to be considered. (knowledge/ evaluation)

Integration planning refers to a process in which the buying business (the acquirer) identifies how it will run the takeover target once the transfer of ownership has been completed. Integration involves many functional challenges such as how to manage customer reaction to the takeover, handle uncertainty amongst employees and integrate potentially different computer systems. Key strategic issues also arise – for example decisions over the future of competing brands, key business locations and the senior management structure. (application) Integration planning normally takes place before the transaction is completed with the aim of ensuring that the acquirer has a clear idea of the integration issues and a realistic action plan of how these issues can be addressed. It can be seen therefore that good integration planning can reduce the risks involved. (knowledge/ analysis)

One reason why integration planning is important (evaluation) in determining the success of a takeover is that the process of integration is closely tied in with the need to achieve synergies. Synergies include cost savings and additional revenues from the deal and are a key part of the value the shareholders of the acquiring firm aim to obtain from a takeover(knowledge). A well-planned integration process will identify the most significant synergies and how they can be achieved, which should also encourage management to focus on those synergies wheb they take control. (rAN and evaluation). For example, when Santander acquired Abbey…...

Similar Documents

With Reference to Organisations or Industries That You Know, to What Extent Do You Think That Recent Changes in the Uk Economy Will Have Inevitably Damaged the Long-Term Profits of Businesses That Operate in This Country?

...With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? Long-term profit is the amount of money a business makes (revenue minus costs) over a long term period. In this case it is referring to the profitability of a company and how much money it will be able to make in the future. There have been many changes in the UK economy recently, some of these fluctuate constantly and others have had significant impacts on the UK economy on the whole and have either helped or hindered businesses that operate in the UK. British Airways is a UK based company that has been affected by the recent changes in the economy, in particular it has affected the demand for its products and also the costs of the business. The UK economy is in recession, so the Bank of England have decided to keep interest rates low in order to encourage spending in the economy to try and get us out of the recession. The impact of low interest rates on a business such as British Airways is that their borrowing costs decrease significantly. With British Airways operating in such an expensive market, this is a very positive thing. Airplanes are an expensive good and borrowed money is needed to purchase such goods, therefore low interest rates for British Airways would mean a decrease in the costs of this firm and could also mean an increase in their......

Words: 781 - Pages: 4

Do You Agree or Disagree with Friedman’s Assessment That the World Is Flat? Justify Your Answer.

...global competitive playing field. It has now become very possible for many people around the world to collaborate and compete in real time with each other on many different kinds of work, markets and products from many different corners of the planet and on a more equal footing than at any previous time in the history of the world. Due to technological advances, the global financial market has been refined with electronic exchanges, networks, institutions, and communications. While each country may have its own financial market, the world is now so closely tied together, causing global effects when one market is prospering or suffering e.g the Euro crisis. Whereas innovation and scientific inventions used to be done in the developed world, the developing world is now catching up as more and more people are being trained in the vitally important fields of mathematics and science. Globalization that used to be largely controlled by European and American individuals and businesses is now being driven by a more diverse non-Western, non-white group of individuals Technology has also leveled the playing field and made the world to be flat in that any company can make its products available to the whole world in a matter of seconds. It is up to the to consumers to choose from whom to buy from. The internet and related technologies make it possible to conduct business across the organizations' boundaries almost as efficient and effectively as it is to conduct business within the......

Words: 781 - Pages: 4

Assessing Your Own Leadership Capability and Performance

...skills Task: Assessing your own leadership capability and performance There are so many definitions of leadership and it is difficult to establish a specific definition; The Oxford English Dictionary definition of leadership is: "The action of leading a group of people or an organization, or the ability to do this." Drucker’s summed up leadership as “The only definition of a leader is someone who has followers” whereas, John C Maxwell said “leadership is influence, nothing more, nothing less”. Warren Bennis focuses more on individual capability and defines leadership as "Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential." Compare these to allegedly one of the greatest leaders of all time where it is written that this leader had the ability to influence the behaviour of other people toward group goals in a way that fully respected their freedom. The emphasis on freedom was important to this leader who influenced many but he didn’t compel anyone to follow him, albeit he had many followers. This of course could not work in the world of business as we must in my opinion have people who can lead effectively supported by followers, because without followers there cannot be leaders. Review the prevailing leadership styles in the organisation (based upon leadership theories and evidence) When you join an......

Words: 2462 - Pages: 10

Your Research Project

... your research project your research project a step-by-step guide for the first-time researcher NICHOLAS WALLIMAN with Bousmaha Baiche SAGE Publications London • Thousand Oaks • New Delhi To my wife, Ursula © Nicholas Walliman 2001 Chapter 2 © Dr Bousmaha Baiche 2001 First published 2001 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Inquiries concerning reproduction outside those terms should be sent to the publishers. SAGE Publications Ltd 6 Bonhill Street London EC2A 4PU SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd 32, M-Block Market Greater Kailash – I New Delhi 110 048 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 0 7619 6538 6 ISBN 0 7619 6539 4 (pbk) Library of Congress catalog record available Typeset by Keystroke, Jacaranda Lodge, Wolverhampton. Printed in Great Britain by The Cromwell Press Ltd, Trowbridge, Wiltshire CONTENTS Acknowledgements Introduction 1 2 3 4 5 6 7 8 Research and the Research Problem......

Words: 136496 - Pages: 546

Assessing Your Own Leadership Capabilities and Performance

...Assessing your own leadership capabilities and performance Understanding leadership styles within an organization A leadership style is a way of providing direction, implementing plans and motivating people. Every company applies its own leadership styles, choosing to adopt those which best suit their particular needs. no one style of leadership fits all situations, so it's useful to understand different leadership frameworks and leadership styles and adapt your approach to fit your situation. Looking through leadership theory, we find that different books and studies opt to split leadership differently. However for this assignment we will be using the Situational leadership theory, developed by Paul Hersey and Kenneth Blanchard in the 1960’s. The model rests on two fundamental concepts; the Leadership Style and the individual or group Maturity Level. Hersey and Blanchard categorized all leadership styles into four behaviour types, which they named S1 to S4: S1.Directing This is where leaders make all of the decisions within the company, then give specific instructions to their (followers) expecting them to follow, all whilst supervising closely the work which is being carried out. S2.Coaching The Coaching style of leadership clearly defines the roles of each follower while still seeking input and suggestions from them. Final decisions are still made by the leader but communication is two way. S3.Supporting The......

Words: 2090 - Pages: 9

With Reference to Your Own Research and the Item Above, to What Extent Do You Think That Targeting Emerging Markets Such as China Is the Best Way for Businesses to Achieve Profit Growth?

...– With reference to your own research and the item above, to what extent do you think that targeting emerging markets such as China is the best way for businesses to achieve profit growth? An emerging market is a market which is experiencing rapid growth and becoming highly profitable which becomes open to many businesses to enter. Achieving profit in China can be achieved through many ways by increasing revenue through changing the way the business operates or to operate as a joint venture. By doing this businesses that operate in China are able to benefit from their profit growth by becoming more well-known. There are exceptions however where business have become successful in achieving profit growth because of operating either unethically or non-environmentally friendly. There are also arguments and examples of business that have operated in China, who have not become successful from having targeted an emerging market because of vast amount of competition that is present. Targeting emerging markets in China has shown to be one of the best ways to achieve profit growth for businesses which sell food and drink, such as Yum Food Brands. China, having accounted for almost 40% of its entire company, was able to become a huge success by having KFC, its biggest fast food chain, reinvent its menus so that there was a wide choice for the 1.3b Chinese population who were are very experimental with western foods and brands. Through having a sheer size of population who like to......

Words: 1405 - Pages: 6

Do You Think That Business Process Outsourcing Would Have Improved Wal-Mart’s Profits? Justify Your Answer.

...Question 3 Do you think that Business Process Outsourcing would have improved Wal-Mart’s profits? Justify your answer. Introduction: Nowadays, outsourcing firms are emerging like mushrooms across the globe. Outsourcing is a journey of two organisations seeking jointly to overcome predictable challenges (Nakkiran S John; Franklin D, 2005). BPO stands for ‘Business Process Outsourcing’ which is the process through which one company hands over part of its work to another company, making it responsible for the design and implementation of the business process under strict guidelines regarding requirements and specifications from the outsourcing company (Destination India, 2009). Today anything that can be outsourced gets outsourced and BPO can include the following key functions: administration, finance and accounting, human resources, payment services, sales, marketing and customer care, supply chain management and software development among others. Almost every developing country in the world today has its Business Process Outsourcing companies that not only accommodate the outsourcing needs of the local industry but astonishingly offer business processing services to other foreign countries as well. Wal-Mart is one of the largest companies in America and its reputation is based on its strategies to minimize operating costs and maintain low prices which attract most of its customers. In today’s challenging business environment, many companies are looking for ways to......

Words: 1574 - Pages: 7

With Reference to the Data in Appendix B, Figure 3, Do You Think the Shareholders of Scott Electronics Plc Will Be Pleased with the Company’s Financial Performance in 2011? You Are Encouraged to Use Calculations to Support Your Answer. (16 Mark)

...With reference to the data in Appendix B, Figure 3, do you think the shareholders of Scott Electronics plc will be pleased with the company’s financial performance in 2011? You are encouraged to use calculations to support your answer. (16 mark) David Perryman, the Head of New Product Development, was set objectives by the Board of Directors which was to devise a project to increase the profitability of Scott Electronics plc and to provide a greater dividend to shareholders. The shareholders may or may not be pleased with the company’s financial performance in 2011. One reason to suggest that the shareholders of Scott Electronics plc will be pleased with the company’s financial performance in 2011 could be due to the increase in total dividends in 2011. As shown in Appendix B, Figure 3, the total dividends have risen from £1m (2010) to £2m. In 2010 the dividends per share would be 1/ 5 which would equal 20 pence per share. In 2011 the dividends per share would be 2/5 which would equal 40 pence per share. In 2010 the Dividend yield would be (0.2/1.5x 100 =) 13.3%. However, in 2011 the Dividend yield would be (0.4/2.0 x 100 =) 20.0%. The dividend yield is a rate of return on the value of the investment. Both dividends per share and dividend yield have improved. This would encourage the current shareholders to retain their shares, and to continue with having support and commitment behind the PLC. It will also help with the overall look of having shares in the Scott......

Words: 758 - Pages: 4

Do Your Own Work!!!!!

...successful in your career, primarily involves good listening skills. We want to teach you things that will contribute to you being a person and a professional of good quality. We want you to be respected by other people. If you show people that you are a quality person, they will respect you more and you will achieve more in your career. Being a good listener is a mark of a person of high quality because: 1. You show respect for everyone involved and they will respect you for that. When you are engaged in something else during class, during a meeting, in court, etc., it sends the message that you are not fully listening. As an instructor, boss, coworker OR a classmate, that tells me that you are discourteous and unprofessional! 2. When you pay full attention, you show people that they are worth your full attention. They then tend to respect you more! 3. The more you pay attention, the more you can take in and use information, which shows that you are a capable person, which will earn respect. On the other hand, if information seems to “go in one ear and out the other,” people will tend to think of you as unreliable or flaky and will not respect you or value you as a professional. 4. The more you listen, the more likely you will be able to follow through on instructions or requests and people will learn that you can be trusted with tasks. This is important while in school because first, it will help you take......

Words: 858 - Pages: 4

Improve Your Written English

... Improve your Written English Visit our How To website at www.howto.co.uk At www.howto.co.uk you can engage in conversation with our authors – all of whom have ‘been there and done that’ in their specialist fields. You can get access to special offers and additional content but most importantly you will be able to engage with, and become a part of, a wide and growing community of people just like yourself. At www.howto.co.uk you’ll be able to talk and share tips with people who have similar interests and are facing similar challenges in their lives. People who, just like you, have the desire to change their lives for the better – be it through moving to a new country, starting a new business, growing your own vegetables, or writing a novel. At www.howto.co.uk you’ll find the support and encouragement you need to help make your aspirations a reality. For more information on punctuation and grammar visit www.improveyourpunctuationandgrammar.co.uk How To Books strives to present authentic, inspiring, practical information in their books. Now, when you buy a title from How To Books, you get even more than just words on a page. Improve your Written English Master the essentials of grammar, punctuation and spelling and write with greater confidence MARION FIELD Published by How To Content, A division of How To Books Ltd, Spring Hill House, Spring Hill Road, Begbroke, Oxford OX5 1RX, United Kingdom. Tel: (01865) 375794. Fax: (01865)......

Words: 33140 - Pages: 133

With Reference to Your Own Research Do You Think That Takeovers and Mergers Inevitably Improve the Performances of the Businesses Involved?

...With reference to your own research do you think that takeovers and mergers inevitably improve the performances of the businesses involved? Mergers and takeovers are similar corporate actions combing two previous separate firms now formed into one legal entity. A takeover revolves around gaining control of something, especially the buying out of one firm/company by another while a merger contrasts as it includes a combination of firms where there is a mutual agreement of two companies to combine and become one entity. At first glance it may be viewed that takeovers and mergers will certainly really benefit all firms and performances of business involved will improve although there are lots of considerable aspects involved in both takeovers and mergers that must be identified and may highlight that businesses will certainly benefit from takeovers and mergers. It is also important to recognise and define what is actually meant by ‘performance’ or firms. Performance or business often revolves around quantifiable terms used to assess how well a firm is achieving its objectives. Many businesses can often measure its performance in terms of obviously its revenue, market share, market capitalism (culminative value of all shares), production, demand and operating efficiency in order to get more sense of how their business is operating and whether and improvements are required but they may also measure the performance of a business in more tangible terms including its innovation,......

Words: 1261 - Pages: 6

With Reference to Organisations or Industries That You Know, to What Extend Do You Think That Recent Changes in the Uk Economy Will Have Inevitably Damaged the Long Term Profits of Businesses That Operate in This Country

...With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? Long-term profit is the amount of money a business makes (revenue minus costs) over a long term period. In this case it is referring to the profitability of a company and how much money it will be able to make in the future. There have been many changes in the UK economy recently, some of these fluctuate constantly and others have had significant impacts on the UK economy on the whole and have either helped or hindered businesses that operate in the UK. British Airways is a UK based company that has been affected by the recent changes in the economy, in particular it has affected the demand for its products and also the costs of the business. The UK economy is in recession, so the Bank of England have decided to keep interest rates low in order to encourage spending in the economy to try and get us out of the recession. The impact of low interest rates on a business such as British Airways is that their borrowing costs decrease significantly. With British Airways operating in such an expensive market, this is a very positive thing. Airplanes are an expensive good and borrowed money is needed to purchase such goods, therefore low interest rates for British Airways would mean a decrease in the costs of this firm and could also mean an increase in their......

Words: 339 - Pages: 2

With Reference to Mattel and Your Own Research to What Extent Do You Think That a Business Strategy of Targeting Emerging Markets Is a Good One

...With reference to Mattel and your own research to what extent do you think that a business strategy of targeting emerging markets is a good one (40marks) An emerging market is a country which is in the process of rapid growth and industrialisation and it can consist of the BRIC countries, which are Brazil, Russia, India and China. Targeting an emerging market could be a good strategy. This is because if the current market the business is operating in is in saturation, it could be then justified for them to expand in to these emerging markets as this gives them an escape route away from a saturated market or if the market is in recession to allow them to maximise sales revenue and allow them to survive in a recession. This is because we see that emerging markets usually have a quickly growing middle classes with a strong economic growth meaning that they would be able to escape the worsening current market and move to sell in somewhere with a stronger economy and a larger middle class. Meaning that this middle class is more likely to have money to spend on the new businesses products or services. Also meaning that the growing middle class is resulting in a culture shift, so there could be higher demand for their products or services in the emerging market. As a consequence to moving in to these emerging markets it also means that there brand name and image is growing and becoming more well known in these new markets. We see this with JLRs move to India as the Indian...

Words: 1185 - Pages: 5

To What Extent Do You Think That Shareholders Are Always Worse Off Following a Merger or Takeover? (40)

...To what extent do you think that shareholders are always worse off following a merger or takeover? (40) A stakeholder is an individual or group with a direct interest in the activities and performance f the group. Mergers occur where two or more firms agree to come together under one firm. Following a merger or takeover, customers are always worse off because they are likely to be faced with less choice thus higher prices. This is because two firms merging together reduces the number of firms in a market which in turn increase their market share thus market power. This makes it increasingly difficult for new firms with innovative ideas to enter the market and for smaller firms to stay in the market, so consumers get less varied and innovative goods. Therefore less choice is a negative implication for consumers. Moreover, less choice can mean higher prices because firms have more market power and less competition so if a firm increases price, consumers essentially have nowhere to go as threat of competitors is reduced. In the merger between Thomas cook and co-operative travel there is fear that they will increase prices and there will be less choice which is completely conflicting of customers objectives which is to have quality goods at competitive prices. However, the extent of these negative implications are dependent on the sizes of the firms integrating, also the external influences at the time. During the merger of Thomas cook and cooperative there was a recession....

Words: 936 - Pages: 4

Retail Management - Do You Think the Wtsa Network Will Prove to Be a Major Contributor to Sports Authority’s Atmospherics or Will It Turn Out to Be a Fad Explain Your Answer

...Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Retail Management 1. Develop a positioning chart for jewelry. Include Wal-Mart, Tiffany, and department stores with jewelry departments, on the chart. Explain your choice of axes, as well as each store’s positioning. 2. Do you agree that the events described in this case are contributing to the blurred positioning of jewelry retailing? Explain your answer and its ramifications. 3. What are the pros and cons of Tiffany selling items priced as low as $200? 4. As a jewelry shopper, how would you expect the total retail experience to differ in Wal-Mart, department stores, and high-end retailers? 1. As an independent supermarket operator, would you want to become a Piggly Wiggly franchisee? Why or why not? 2. What are the advantages to Piggly Wiggly of having franchised outlets instead of its own stores? The Disadvantages? 3. What criteria should Piggly Wiggly use in evaluating potential franchisees? 4. Should Fleming require Fresh Brands to use the Piggly Wiggly name and all of its promotions? Explain your answer. 1. Is the new high-tech research environment going to eliminate the use of human researchers? Explain your answer. 2. What are the pros and cons of using 3-D CAD systems for marketing research purposes versus......

Words: 414 - Pages: 2