Mergers And Acquisitions Current Industry Scenario Management Essay

Mergers And Acquisitions Current Industry Scenario Management Essay The previous chapter had given us an insight of the research that would be conducted providing an introduction to it. A brief discussion was done by the researcher regarding the research and the possible outcomes of the research. In this chapter we would be discussing the relevant literature that would be used by the researcher to conduct this study. It would also give us few insights about the real world scenarios with regard to Mergers and Acquisitions. The key factors that would give success in case of a Merger/Acquisition are discussed. Finally, this chapter concludes with a summary of the key points made throughout the chapter. To reiterate the research title is; What are the repercussions of mergers and acquisitions: do they offer competitive advantage; is the advantage sustainable? A review on GE from 2005 to 2010. The Aim of this research is to critically evaluate the consequences of mergers and acquisitions on the extent to which it can prove to be beneficial for an organization and how well can an organization get accustomed to the competitive advantages from mergers and acquisitions? based on a review of General Electronics from 2005-2010. In meeting this aim, the following Objectives were set: To critically observe the methods and procedures followed by organizations for mergers or acquisition to happen To critically examine if the motivating methods employed by General Electric Company help to yield more output in a merger and acquisition, 2005 to 2010 To assess the scope, these mergers and acquisitions contributed towards increasing both the top line and bottom line growth in General Electric Company, 2005 to 2010 To critically observe the methods and strategies that General Electric Company followed to sustain their growth and development obtained from the merger or acquisition, 2005 to 2010 To identify the areas of integration in an organization that most need improvement and to resolve the problems Mergers Acquisitions Current Industry Scenario: The current industry scenario as far as Mergers Acquisitions (MA) are concerned is more of an act of showing power by the company pushing for the merger or takeover. No one is happy as far as a merger or an acquisition is concerned other than the company which is taking over. A MA normally leads to various staff issues, the culture of an organization goes through a complete change and this change becomes hard to be accepted by the existing staff members of the company which is being taken over. We have seen many scenarios wherein the staffs of the company being taken over have had to either undergo a huge change or leave the organization itself. But, the scenario is always not the same; there have been instances wherein the company taking over have come forward to help the existing staff members in the old organization to blend in the new system which they are not used to. Many companies have made it to the top of their respective industry because of such MAs. In the instance of the most recent takeover of Cadbury by Kraft Foods, both the companies have been known for their bitter rivalry in the industry. But at the end of all this rivalry the board of Cadburys agreed to bow down for 11.5 billion pounds in January 2011. The Chairman of Cadbury Mr.Roger Carr in an interview with BBC was quoted to say that the reason for which Cadbury agreed for the takeover was more in the financial interest of the company. This clearly shows that any kind of merger would just be done on the basis of the financial ability of the company to handle the pressure. Cadbury a company known for its best HR practices had to give away its culture and its practices to a company like Kraft foods which the moment they took over Cadburys, just started replacing the existing staffs with their own staff. This is the kind of attitude that saw many lose their jobs. There were many who were made to leave their jobs by showing the culture of an American company to the British workers. Cadbury was known to take care of its workers and when the takeover was completed it was just cleaned over by Kraft Foods just in the way they wanted. This is not only for Cadbury, this is normally what happens in any takeover and Kraft-Cadbury is just an example of what has been happening around. But, there have been few takeovers which might also result in the growth of the bond. The example for this can be the General Electric Company (GE) takeover of Lineage Power Holdings, Inc., from the Gores Group, LLC. This takeover which happened in March 2011 resulted in the growth of Lineage Power Holdings Inc., in the field of telecommunications and data communication. Though the company was taken over by GE the company still stuck to its culture and none of its staff have been asked to leave by GE. This showed GEs attitude towards its employees even if it meant that it was a company that they had taken over. This attitude of GE shows how a company should handle such acquisitions in a smooth manner without affecting the employees. Though the current scenario gives us a different picture about Mergers Acquisitions it is very important that companies do not take decisions based on the current scenario alone. That is where it becomes important for an organization to do ample research before proceeding for an Acquisition or a Merger. There are number of theories that suggest different kinds of approaches to be taken with regard to a MA. The reviews of the literature on these theories are discussed by the researcher further in this chapter. Mergers Acquisitions Classification: The classifications based on the transactions can be done as Horizontal, Vertical or Conglomerate (Gaughan, 2002, Chunlai Chen and Findlay, 2003). As stated by Chunlai Chen and Findlay (2003), horizontal MA is where the target and the acquiring company are in the same industry. The example for such a merger was discussed earlier when the researcher spoke about Kraft Foods takeover of Cadbury. This is largely due to the fact that there has been substantial change in the technology and liberalization of industries. MA are said to be classified as vertical when there is a combination of firms which were already in a client supplier or a buyer seller relationship. The organizations that are involved in such transactions normally look at downsizing the costs in the value chain and eventually benefit the economics of scope (Chunlai Chen and Findlay, 2003). As stated by Gaughan (2002), a transaction that involves two companies which operate completely unrelated business is called Conglome rate. In addition to the above MA can also be classified as either Friendly or Hostile (Chunlai Chen and Findlay, 2003). A transaction is considered as Friendly if the target companys board agrees to the takeover amount and the MA is carried out. If the takeover happens with the target companys board just needing to surrender to the acquiring company just for the money, it is considered as Hostile. Chunlai Chen and Findlay (2003) also stated that the MA could be Domestic or Cross-Border for the companies that are involved. This is normally done in order to create a presence or to look at having better opportunities for success in the Industry. The classification of MA could then be summarized in the table below: Classification of merger acquisition transactions MA classification in terms of Value chain Relationship Economic area Horizontal MA Vertical MA Conglomerate MA Friendly MA Hostile MA Domestic MA Cross-border MA Taking into account the different classifications in terms of Value Chain, Relationship and Economic Scope the researcher would be considering the different MAs that have been executed by General Electric Company (GE) and look at the effect that such MAs have had upon the employees of the target organization. The researcher further looks at the various theories that would have been considered for different MAs executed by GE. Motives and the Theories behind Mergers Acquisitions: Exploring the motives of firms engaging in MA transactions has been placed with a significant amount of efforts by different authors. Earlier Trautwein (1990) and more recently Cox (2006) provided us with a more brief description of the motives by underlaying different theories (Please refer to Table 2.2: MA Motives). Trautwein(1990) noted that MA makers were more interested in the valuation (the deal yielding a higher Net Present Value) and synergy to justify the merger or acquisition. As expected it is quite clear that managers do not refer monopoly power in any of the benefits that the acquiring organization might be deriving out of the deal. Trautwein (1990) also states that the process and the raider theories have very little evidence on the motives implied by them both in the form of research or in practice. The disturbance theory is also discussed by him as being considered at the macro-economic level than the micro-economic level which is more related to the present research and hence the researcher has not considered the same. Interestingly, Gaughan (2002) gives a more realistic way of viewing the MA motives with numerous empirical case studies which has reference to the theories with more details. There are four main motives for a firm to execute MA according to him, they are: (1) Quick growth comes through M&A; (2) Economics of scope or scale may be gained through M&A; (3) Having a larger firm due to a MA means more access to capital market, which would in the future lead to a lesser cost of capital, i.e., benefits of more financial options; and (4) A firm with superior management skill might also look at MA with an anticipation of higher gains through the target organizations business. One the whole, the researcher quite clearly shows how all the three authors noted above have concurred on the fact that any MA is driven by not one but many complex motives. And all these are not at all similar in any form and would always vary from deal to deal which can never be justified with a single theory/approach. Merger acquisition motives (adapted from Trautwein, 1990 and Cox, 2006) Motives Theory Description Rational Choice MA MA Benefitting Acquirers Shareholders Gaining Based on synergy Efficiency Theory The three major synergies Financial, Managerial and Operational are achieved when MA is executed. Transfer of Wealth from customers Monopoly theory Market power is seized by planning and executing MA. Horizontal Conglomerate MA types wherein the acquiring firm takes control of the industry on the whole. Transfer of Wealth from targets shareholders Raider theory A person who oversees and initiates wealth transfers from the stockholders of the companies he bids for exchange of excessive compensation after a successful takeover is called a Raider. Gaining based on private information Valuation Theory/ Investment Theory This kind of MA is normally planned and executed by managers who have in-depth knowledge about the market of the target company. MA Benefitting Managers Empire- building theory/ Agency theory Instead of increasing the shareholders value, MA is planned and executed to maximize the Managers own utility. Process Outcome MA Process theory MAs are executed as an outcome of another process as per this theory. These processes can be internal or external to the organization. Macro-Economic Phenomenon MA Disturbance theory The MA which is triggered by virtue of an economic disturbance forms the Disturbance theory. These are normally those MAs which are not that successful when it comes to long term as they are a result of an economic imbalance. The successful Acquisition-Integration strategy of General Electric Company A Preview: The case study that has been taken for this research is that of General Electric Company, a name which has been very successful in Mergers Acquisitions mostly due to its strategy techniques. The most successful strategy as far as GE is concerned is the Wheel of Fortune: The Pathfinder model of GE capital. The whole cycle of the integration of both companies as a single entity involves a lot of involvement from both the sides. The most discussed acquisition-integration process is that of the GE Capital Services Wheel of Fortune model coded as the Pathfinder Model. This model is now well established and has been successfully implemented by GE in all its acquisitions. This model consists of four main stages called Action Stages viz. Pre-Acquisition, Foundation Building, Rapid Integration and Assimilation. It starts from when the deal is initiated to the stage where the integration is completed. The four stages are further divided into two or three more processes within each stage. The Pre-Acquisition stage has processes like Due Diligence, Negotiation and Announcement, Closing and Signing off of Deal. The Foundation Building stage consists of the launch of the integration, the acquisition -integration workout and the strategy formulation. The Rapid Integration consists of two processes Implementation of strategy and Course Assessment and Adjustment. The last and final stage is Assimilation wherein you have the long-term evaluation and Adjustment and then the Capitalization of the success of the integration of both organizations. Also in each action stage several best practises which are more specific and practical to help the managers to support the integration process. WOF-GE.jpg The Wheel of Fortune: The Pathfinder Model This model clearly shows that the acquisition integration is in itself an art which can be also a science when it comes to principles followed by this model. A particular sequence of actions which are leveraged according to the requirement of the acquisition-integration process is clearly defined in the Pathfinder model, most of which are more unique in nature.  The model is shown with such representation that it does not eliminate the need for managers to improvise for the integration process but it however prevents this improvisation to become a centre point in the integration process. This is the model that has been successfully implemented by GE time and again and has always paid them rich dividends when it comes to both organization and staff integration, which is very important for the integrated organization to thrive in the current market situation. Conclusion: In the above chapter the researcher has given the insights on the current scenario with regard to the Mergers Acquisitions. The researcher also ventures into the different theories with regard to Mergers and Acquisitions and explains with the help of necessary literature the concepts surrounding these theories. Also the researcher identifies the various scenarios in which these theories are to be used in a merger or acquisition. The researcher further gives information about the reason why GE has been chosen for this research as a case study by emphasising the fact that most of the acquisitions that have been executed by GE have been successful. The Pathfinder model being followed by GE is explained by the researcher, giving a summary of the acquisition-integration process which has helped GE in smoothening of all acquisitions handled by GE. On the whole this chapter deals with various literatures that detailing the MA processes and gives the researcher a strong idea about the Resea rch Methodology to be followed for conducting this research successfully.

System coverage

This guide is written for forest rangers and foresters, county forest board members and exaggerators extension workers. Each illustration introduces a set of principles and planning procedures on how exaggerators planning can proceed for the restoration of degraded sloping lands and for the incorporation of trees into agricultural landscapes. 1. 3 How to use this guide? This guide does not provide ready-made recipes, but offers advice on how to integrate trees and exaggerators practices into land restoration in general, and in sloping land management.Its aim is to help extension workers and rammers formulate their own knowledge, innovations and practices for the specific conditions they face. The guide also takes stock of good practice and success stories from locally and aboard, as well as lessons learnt from failures. It is designed as an entry point primarily for field practitioners. In cases where exaggerators is completely absent in current field practices, it may be used to ini tiate a participatory planning process for the incorporation of trees in farms and sloping lands.The purpose is to assist in sustainable economic development and environmental protection. Exaggerators is the combination of agriculture and forestry; rather than treating these as separate options for land use, it brings both together, recognizing and promoting tree use on farms. Exaggerators can be defined as: The integration of trees in farming systems and their management in rural landscapes to enhance productivity, profitability, diversity and ecosystem sustainability.While the number of trees in natural forests is steadily declining, the number of trees on farmland is increasing. In many parts of the tropics, exaggerators is providing essential products and services that can help relieve he pressure on the natural forest domain. EXAGGERATORS: OTHER DEFINITION In simplest language, â€Å"exaggerators is the production of trees and of non-tree crops or animals on the same piece of land†. The crops can be grown together at the same time, can be grown in rotation, or can even be grown in separate plots when materials from one are used to benefit another.However, this simple definition fails to take into account the integrated concepts associated with exaggerators that make this system Of land management possibly the most self-sustaining and ecologically sound of any agricultural system. Thus, a second definition of exaggerators would be, ‘the integration of trees, plants, and animals in conservative, long-term, productive systems†. Exaggerators can be considered more as an approach than as a single, finished technology.Although several finished systems have been devised and tested, such technology may require adjustment for particular situations. The flexibility of the exaggerators approach is one of its advantages. WHY EXAGGERATORS? Exaggerators systems make maximum use of the land. Every part of the land is considered suitable for useful pla nts. Emphasis is placed on perennial, ultimate purpose crops that are planted once and yield benefits over a long period of time. Such benefits include construction materials, food for humans and animals, fuels, fibers, and shade.Trees in exaggerators systems also have important uses such as holding the soil against erosion and improving soil fertility (by fixing nitrogen or bringing minerals from deep in the soil and depositing them by leaf-fall). Furthermore, well-designed systems of exaggerators maximize beneficial interactions of the crop plants while minimizing unfavorable interactions. The most common interaction is intention, which may be for light, water, or soil nutrients. Competition invariably reduces the growth and yield of any crop.Yet competition occurs in monoculture as well, and this need not be more deleterious in exaggerators than monoculture systems. Interactions between components of an exaggerators system are Often complementary. In a system with trees and pastu re, with foraging animals, the trees provide shade and/or forage while the animals provide manure. Thus, exaggerators systems limit the risks and increase sustainability of both small- and large-scale agriculture. Exaggerators yester may be thought of as principle parts of the farm system itself, which contains many other sub-systems that together define a way of life. . 5. 1 -or produce For farmers, well managed exaggerators systems on sloping lands provide food, fiber, fodder, fruit, construction materials, medicine, honey, dyes and resin/gum, among other products. They also provide cultural and household utility items, bush meat from hunting and trapping, and products for sharing and barter among community member. Planted trees can also improve soil fertility and therefore support the production of staple crops and enhance DOD security in this way. 1. 5. 2 To protect Sloping lands are vulnerable to a number Of risks and hazards.Intense monsoon rain can trigger landslides and flas h floods and lead to soil erosion. Trees on slopes can help to prevent these effects, replenish soils and provide other environmental services. For example, a combination of grass strips, shrubs and trees in contour hedgerows on slopes can significantly reduce soil erosion. In addition, droughts can significantly reduce agricultural production, but exaggerators trees can help redistribute water in soil to provide annual rope with greater water availability, and provide shade to prevent water loss.

Public Health System Essay

Health policy and entire health care system in both the USA and Great Britain create a core for national quality standards. Dealing with health as a key condition for local and global human activity representatives of medical spheres in these two countries on opposite sides of the ocean have long-term experience which differs greatly in terms of functional, financial, and social issues. Financing. In the UK financing of the industry is done out of taxation paid by people on regular basis. 130 billion of dollars annually are spent to cover expenditures of healthcare system: paying out salaries for physicians, facilitating hospitals, providing latest medical technology and treatment (Hadikin, 2003). British health policy does not require from patients to pay on the scene since it has already been done automatically by their tax procedure. Sometimes those having problems with eyes or teeth will have to pay very small amounts to cover the cost for particular tests. However, such co-payments are not common in the UK and are covered by government for special society layers including aged and young people, special patients with chronic diseases, etc. The state pays directly to doctors and cover fees for a wide range of hospital services (Hawkes, 2007). In the USA payments for healthcare are done through private insurance system. Many believe that British system is more convenient since patients receive â€Å"free at the point of service† medical treatment. American healthcare sector is employee-employer based (54%) with partial governmental funding (46%) for the poor, the disabled, Native Americans, and elderly adults. Average American spends annually approximately $6,400 for healthcare where $2,880 is covered by government, $2,675 by private insurance, and more than $800 paid directly to doctors or other additional services. Unlike the US with population equal to more than 302 million people, the UK with its 61 million of citizens spends $2,720 each year to be confident in high-quality medical treatment. Described in detail, $2,370 are covered by British government received through national taxation and other $350 go directly from patients for extra services required (Sultz & Young, 2008). Challenges. Over years health policy in Great Britain has been facing significant obstacles in its strive for providing high-quality national medical service. First of all, due to the fact that all costs having to do with healthcare are covered through taxation without going directly to doctors on daily basis physicians tend to be less efficient. On the other hand being confident in that medical system is paid for by the government people with light complaints which can be easily treated at home with help of drugs purchased in the nearest drugstore immediately make an appointment unreasonably disturbing physicians who may have very urgent problems to take care of. Also, being structurally located under the government health policy in the UK must follow the rules set from above. That’s why if the government representatives decide that specific drug is cost-ineffective they may choose not to cover such medications. It is especially true for drugs against cancer which have always been extremely expensive with only several month effect and certain plastic surgeries which are considered to be addition features of healthcare and may never be crucial to health (Hawkes, 2007). Sadly enough, Great Britain tends to keep young people and those less than eighty years old in focus. The thing is that significant number of people in their eighties tend to be seriously ill whereas average life expectancy in Britain reaches 79. Unlike the US, where doctors do their best to save people no matter how old they are, English government refers to limited financing and number of able-bodied people who have the potential but need treatment. Unfortunately, anti-cancer treatment costs a lot and in majority of cases prolongs life of an aged person for couple of months only. In the UK National Institute for Health and Clinical Excellence is authorized to decide whether specific drug in particular case is worth to be covered and normally they conclude that it is not. One more problem encountered by health policy in Britain again has to do with money issue. Governments have specific amount of money to spend annually on a person who has health problems. However, costs for drugs and medical treatment are constantly escalating and quality of service, therefore, is gradually dropping making this proportion more and more blurred (Hawkes, 2007). The biggest challenge for American citizen regarding health policy is a necessity to pay bills for all services they receive including various tests, prescriptions, visits to physicians, etc. Regardless of the fact that this tradition has a long-term history it has caused enormous inequity between the rich and the poor. Having created two healthcare bodies called Medicare and Medicaid which handle financial issues of old and poor people accordingly, they are far from being perfect. Firstly, people with membership in one of these institutions should go through never-ending bureaucratic procedures that require time and effort valuable for both aged people and low-income society representatives. Secondly, having received long-awaited registration they are provided only with basic services and typically have almost no choice while selecting doctors and hospitals (Barr & Dowding, 2008). In terms of care organization any insurance-based system including American one provides care upon request. For instance, when a person gets heart attack s/he is transported to the hospital, receives necessary medical treatment, and post-traumatic prescription. In Great Britain similar procedures are planned in advance. Thus, British doctors should calculate how many beds for what kinds of patients should be provided, how much vaccine should be purchased to immunize specific number of people and so on. Both American and British health policies have one thing in common having to do with technical issues of the system. Speaking about response times, neither of these states has a set regulation regarding standard response time applicable to all locations under any conditions. There exist certain agreed rules between providers of emergency service and official authorities that instruct required response times. Significant number of these regulations, however, have to do with private emergency service providers who cover only small portions of society. Both Americans and British have concluded that every location throughout these two countries should be provided with 8-minute medical help. (Davis, 2005) Irrelevant of the absence of set rules regarding response times cardiac arrests are considered to be the most urgent and demanding emergency calls in entire emergency service system. Majority of people who experience cardiac arrest should be provided with proper treatment including electric shock with ALS intervention within the first minutes. Figures show, that the sooner the ambulance arrives the more chances it has to save the patient from permanent brain death and irreversible processes which start occurring in human body shortly after the cardiac arrest. It happens on very rare occasions that the person survives receiving help within more than ten minutes. (Davis, 2005) Taking apart from cardiac arrest, response times for normal emergency calls that have to do with physical injuries or wide range of attacks vary from 12 to 14 minutes. Specifically, Wales show the worst result ever obtained in Great Britain in terms of response time and emergency service. According to recent statistics average Welsh emergency service provider arrives not earlier than 20 minutes after the emergency call. British authorities claim that it is totally unthinkable to demonstrate such low performance and that this part should be immediately improved. (Brindley, 2008) In conclusion it would be appropriately to note that both health policies have their advantages and drawbacks as basically any other system. The following table highlights key features of American and British healthcare sectors: Health policy in the UK Health policy in the USA Advantages Drawbacks Advantages Drawbacks Every member of society is provided with medical care Random cases of poor quality service due taxation payments as opposed to direct ones Better consumer choice provided due higher cost for medical services Only insured ones get the best service and treatment Because of sufficient NHS funds treatment and drugs cost less Some misuse medical treatment due to longing for communication and company (especially old people) Active implementation of latest technological equipment and scientific innovations in medical sphere Many retired people choose to work since it’s the only way to receive medical insurance Patients receive decent treatment regardless of their age, social status, or level of income Many claim they do not receive the right to choose a hospital or a doctor they like Patients visit hospital only in cases when it is really necessary, reasonable, or urgent Prices for medical treatment and drugs are higher because of debates and policy on governmental levels References Barr, J., & Dowding, L. (2008). Leadership in Health Care. London: SAGE Ltd. Breen, N., Woods, J., Bury, G., Murphy A. & Brazier, H. (1999).   A national census of ambulance response times to emergency calls in Ireland. Journal of Accident & Emergency Medicine, 17, 392-395. doi:10.1136/emj.17.6.392 Brindley, M. (2008). Ambulance Response Times Worst In UK. Retrieved March 20, 2009, from WalesOnline Health News Web site: http://www.walesonline.co.uk/news/health-news/2008/06/20/ambulance-response-times-worst-in-uk-91466-21109781/ Davis, R. (2005). The Price Of Just A Few Seconds Lost: People Die. Retrieved March 21, 2009, from USA Today Web site: http://www.usatoday.com/news/nation/ems-day2-cover.htm Hadikin, R. (2003). Effective Coaching in Healthcare. London: Books for Midwives. Hawkes, N. (2007). NHS’s Advantages And Shortcomings. Retrieved March 20, 2009, from Frontline Web site: http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/interviews/hawkes.html Sultz, H., & Young, K. (2008). Health Care USA: Understanding Its Organization and Delivery. New York: Jones & Bartlett Publishers

The Marginalized Students By Kristopher N. - 1589 Words

The Marginalized Students By Kristopher N. Heaton As we move forward in our time of simultaneous growth and decay in the modern age, we should take a look at something that is often cited as both one of the great causes of and solutions to inequality in the American community: educational access. Education is the factor in our society, or any society for that matter, that allows people to strive for their chances of equality, or better yet, greatness in a convoluted world belonging to both marginalization and wealth. However, at the same time, many people are being forced to miss out on their chances for an education and the opportunities that come with it. If we improve the opportunities for education, we also stand to diminish troublesome income disparities. Such a course of action is something that depends on the school districts and the resources that are available to them. If one takes a look back at the history of education in our country, they could undoubtedly see challenges to education access and ho w far the United States has come since then in providing said access. The positive development has seen increased education access for demographic groups ranging across four specific categories: ethnics, race, gender and one s place in the class system. Despite the improvement that can be traced back through time, the look back can also open the eyes to obstacles that face today s students and how they compare with the adversities of old. And said progress has