...Mergers and Acquisitions Professor: BUS 508 November 1, 2013 University ABSTRACT The purpose of this research is to give an overview of the merger and acquisition between United States Airways and American Airlines. Also, we will access the positive or negative effects due to the merger acquisition as well as examining the organizational structure and determining how the human resources department played a role in changing the company back into a major airline within the industry. Mergers and Acquisitions When describing the circumstances that resulted in the merger acquisition of United States Airways (U.S. Airways) and American Airlines (AA), we have to understand the root cause in mating these two corporations into one business model. The first reason was the simple decision to bring two major airlines together that were headed into default, especially American Airlines that had become known as one of the worst in the airline industry. Service delays, customer service backlash and employee loyalty were some of the main contributors why this airline needed help and a boost to get back into the competitive market. U.S. Airways was losing its battle with superpower Delta, discount fare air carrier Southwest and mega international flyer United airlines, both American and U.S. Airways were continuously losing their customer base due to the other airline companies merging and giving consumers better customer service, more city destinations to choose from and...
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...Assignment 2: “Expanding Your Business” Andrew Knox Business 402 Small Business Management Professor Dotty Heady Strayer University August 14, 2014 Abstract This paper contains a financial plan for a self-created business and discusses the most appropriate location for a new business with a defined reasoning. In addition, it contains a developed guerilla marketing strategy for the small business in questioned and an outlined plan for securing various sources of debt financing for that particular business as well. Introduction When starting your own business you need to be positively sure of what you want and need to do. More importantly have a plan and be mentally and physically to carry the plan out. In other words bring it to life. You should know or have an idea of what your ideal employee would be like and pursue the right people to fit your business and the persona you would want your business to have. Also look for venture capital angels this could be potential resources to aid you with the ideal of owning and running your own business. Outline a financial plan for your small business. Startup Expenses | | | Knox’s Mini- Mart | | | | | | | | | Sources of Capital | | | | | | Owners' Investment (name and percent ownership) | | | Andrew Knox 65% ownership | | $ 80,000 - | Other investor | | - | Other investor | | - | Other investor | |...
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...HBCFinancial Analysis: The Value of Comcast before the Acquisition: We use the DCF (Discounted Cash Flow) analysis to estimate the value of Comcast before the acquisition. First, we want to calculate the expected future free cash flows available (Appendix 1) after making necessary expenditures for the firm to continue as a going concern. In order to get the projected financial statements, we made following assumptions: * Growth rate: We believe Comcast has entered the mature stage of the business lifecycle. So its growth rate should be relatively stable and not higher than the general GDP growth rate. We assume its revenue will grow at 1% from 2011 to 2015 and then decrease to 0 because we don’t believe the industry has a prospective future. * EBITDA: According to the historical data, EBITDA accounts 42% for the revenue on average. We use this average percentage to predict the future EBITDA. * Capital Expenditure: Based on the historical data on the financial statements, it is obvious that Comcast’s capital expenditure has a decreasing trend. So we just assume the company’s Capex is declining at an annual rate of 1% since 2010. * Net Working Capital: Also according to the historical growth rate of NWC, we chose 10% as the annual growth rate of NWC. * WACC: We use the average WACC of the CATV system industry which is 8%. * Unlevered free cash flow is often useful when an investor is interested in acquiring a company. The company's unlevered free...
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...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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...Embedded in certain contracts are several types of incentives; cost, performance, and delivery that encourage contractors to perform within contract requirements. Burleson states that cost-incentive contracts are the most common and the target profit or fee is established at the start of the contract. “Full profit or fee is paid when the actual cost meets the target cost. A fee reduction results when the actual cost exceeds the target cost, and an increase in profit or fee results from actual cost that is below the target cost” (Burleson & Wilson, 2007). Performance incentives are appropriate when the results of a contract, service or delivery, are considerably important. Performance incentives can be compared with the contractor’s performance on a service contract, or measured against performance data of a delivered system or product. Both cost and performance incentives also may “include positive and negative performance evaluations and a similar fee increase or reduction using a fee adjustment formula” (Burleson & Wilson, 2007). The FAR states, “No incentive contract may provide for other incentives without also providing a cost incentive (or constraint)” (Federal Acquisition Regulation, 2012). If improvement in the contract delivery schedule is the Government’s focus, then it is appropriate to negotiate a delivery incentive contract. “Deliveries can be objectively measured by the delivery data and quantity delivered; as in other incentive structures, delivery incentives...
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...Introduction The Body Shop was established in 1976, selling scented soaps and lotions, made only from natural ingredients. Within 14 years, the company expanded into 39 countries, with over 1200 lines of products today. The founder, Anita Roddick, was known as an avid social activist and she largely promotes and supports causes such as ending animal testing In 2006, The Body Shop was bought by L’Oréal SA for £652m. The Body Shop- Managing Public Relations Anita Roddick was quick to recognise that there was a market for natural-based skin products that were free from chemicals and were not tested on animals. After gaining awareness on public’s position, The Body Shop took steps in building an effective public relations programme. This programme includes marketing its brand as one that is socially responsible, their core values being: against animal testing, support community trade, activate self-esteem, defend human rights, protect our planet. With clearly defined core values, the business was able to influence consumer’s imaginations, and perceive The Body Shop as an ethical business presence. In 1990, upon conducting environmental analysis, Anita Roddick took a different approach in promoting her products, claiming that she was uninterested in seducing consumers with expensive images. Instead, she established the environmental projects and community care department to portray the company as one that is socially responsible. This was part of its business plan of adopting...
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...revenue 2) 80% of its operating income came from the sale of mid tier products BKI 2006 EBITDA margin of nearly 22% was among the strongest within the peer group shown in Exhibit 3 3) BKI operating margins had decreased slightly over the last thee years a. Integration costs b. Inventory write down associate with recent acquisition c. So after integration, operating margins should match historical margins 4) U.S. industry as a shole faced considerable pressure from imports and private label products, Blaine had not cut its prices et so it had suffered growth increase in recent years. So some of its core products lost market share 5) Growth in Blaine ‘s top line was almost exclusively to the acqusitions 6) Return to Shareholders- Below average (E/S fallow due to dilutive acquisitions) 7) 2004-2006 annual return for...
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...As the two leading consumer goods companies in the world, both P&G and Unilever have been extremely successful in building highly recognized brands that meet consumer needs and drive sustainable value to its shareholders. Currently, P&G operates in two unique segments: Beauty/Grooming and Household Care. It has completely exited the foods segment with the latest divestiture of Pringles. In comparison, Unilever operates in three different segments: Personal Care, Foods, and Homecare. In the past five years, Unilever has re-aligned its foods portfolio (with the divestitures of Lawry’s & Bertolli) while making major acquisitions in the Personal Care space (TIGI & Alberto Culver). For both companies, growth is the name of the game. P&G has committed to growing organics sales 1%-2% faster than the market while Unilever set a goal to double the size of its business in 10 years while reducing its environmental impact. To achieve their ambitions, both companies have articulated their corporate strategy within their annual reports (P&G Shareholder Report 2011, Unilever 2010 Annual Report). Today P&G’s strategy revolves around market development through innovation. Their process starts at identifying a consumer need and developing a product that solves the problem. Once the product and design are finalized, they leverage their complimentary assets such as marketing and distribution to launch. (Anthony, Video) Although a CPG’s value chain is more complicated and involved, P&G is extremely...
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...The foundations of psychology has been a mystery to many for quite some time. Psychology is the scientific study of mental and behavioral processes. Since ancient times, humans began trying to make sense of the mental process. The roots are traced far back in history to ancient philosophers. There was no hard evidence of how the mind works until early philosophers began scientific studys of the human mind and recorded their findings. In this paper you will read about early philosophers that related to the beginnings of psychology as a formal discipline. I will also identify some major philosophers in the western tradition who were primary contributors to the formation of psychology as a discipline. I will also be exploring the development of the science of psychology during the 19th century. Ancient philosophers is the where history bagan in the field of psychology. Although these philosophers all had an intrerst with how the human mind and body works, they all had different interests, studies and experiments. They may have shared similar standpoints but some had different views. Socrates, Plato, and Aristotle were three Greek ancient philosophers who had a major influence on psychological thought. “Know thyself” one of Socrates’ most famous quotes. This quote was used to emphasize how important it is to be aware of one’s self. Personal reflection and self- examination are key factors in psychology. Plato was one of Socrates’ most prized students. He believed...
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...The Hershey Company (NYSE: HSY) Investment Summary Overviews The Hershey’s Company is a U.S. leader in the chocolate manufacturing industry, with international exposure as well. Hershey’s was founded by Milton Hershey in 1894 with the mission to create a smile for all candy lovers. The company has a large product line of candy. The core brands consist of the Hershey’s Bar, Hershey’s Kiss, and Reese’s. Hershey’s products are found in over 80 countries and Hershey’s strategically focused to increase international global market share. Currently, its business strategy is to focus on innovation of new products, core brands, and recent business acquisitions to maintain its stable revenue. Hershey’s 5-year compound growth rate is 6.8%, and the company experienced positive growth during the economic downturn. Overall, Hershey’s main competitors are Mars, Mondelez, and Nestle. RISKS As the economy continues to recover from the economic downturn, increased prices in the cost of sales will occur, especially as Hershey’s moves towards certified cocoa. Cocoa beans, sugar, and dairy show trends of increased prices; however, Hershey’s uses hedging instruments to minimize the impact of higher cost of sales. Therefore, the company is able to maintain the average cost of sale of 56%. Also, Hershey’s has lost international market share, but recent acquisitions Brookside and Shanghai Golden Monkey Food have recently shown improvement in international presence. Also, consumers demand...
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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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...language learning is dependent on existence of different profiles of language ability. “Some learners seem to have a linguistic orientation to learning; that is, achieving success by considering language learning to be a pattern-making problem, with rules and analysis figuring prominently” (Skehan, 1991). Other learners are more memory-dependent and do not see language as a system whose rule-based nature can be exploited. They see language a group, and these groups or prefabricated components provide direct, potential communication. Knowing how a learner, learns is highly important for achieving language learning success. Interlanguage is the system between the systems used in L2 acqusition process that contains aspects of L1 and L2, but with rules of its own. It is now the foundation of all L2 production. “It was investigated the first language transfer in L2 writing, and they found that when second language learners write in L2, their L1 has an effect on their...
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...Change and Culture Case Study 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...
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...AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH Summer’ 2012-2013 FINAL EXAM SCHEDULE (Released on July 13, 2013) Day 1: July 29, 2013 (Monday) TIME CAMPUS 1 ,4 & 5 GLOBAL TRADE HEALTH AND SAFETY FINANCIAL ACCOUNTING E-GOVERNANCE URBAN DESIGN-2 E-MARKETING AUDITING CAMPUS 7 SECTIONS ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL A,B,C,D,E,F,G,H,I,J,K,L ALL ALL ALL M,N,O,P,Q,R,S,T,U ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL 9:3011:30 ELECTRICAL CIRCUITS 1 ELECTRICAL CIRCUITS 2 ELECTRICAL MACHINES-1 ADVANCE MACRO ECONOMICS POWER SYSTEM PROTECTION STATISTICS FOR SOCIAL SCIENCE INTERNATIONAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT STRATEGIC MANAGEMENT BANK FUND MANAGEMENT SOCIETY & THE ARCH. OF BENGAL BUSINESS COMMUNICATIONS 12-2 INTRODUCTION TO ENGLISH POETRY COMPILER DESIGN MACRO ECONOMICS BUSINESS COMMUNICATIONS ELECTRICAL MACHINES -2 MANAGEMENT AND MEDIA MARKETING TRAINING & DEVELOPMENT FINANCIAL STATEMENT ANALYSIS OPERATING SYSTEM-2 DISCRETE MATHEMATICS FINANCIAL MANAGEMENT CONSUMER BEHAVIOR ALGORITHMS 3-5 AGRICULTURAL ECONOMICS SYNTAX AND SEMANTICS DESIGN THEORY-I MATH METH OF ENG’G VLSI CIRCUIT DESIGN Released on July 13, 2013 Day 2: July 30, 2013 (Tuesday) TIME CAMPUS 1 ,4 & 5 WEB TECHNOLOGIES TAXATION FUNDAMENTALS OF COMPENSATION BRAND & PRODUCT MGMT. INTRODUCTION TO BUSINESS PROGRAMMING LANGUAGE 1 (CS) CAMPUS 7 SECTIONS ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL...
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