...CHAPTER ONE: CHAPTER TWO: * Strategy is a planned process whereby organizations can map out a set of objectives and methods of meeting this objectives. * Corporate strategies is a company-wide strategies that are concerned with the long-term view of the organization * Business strategies focus on one line of business; building a strong competitive position * Three corporate strategies (Restructuring, Growth and Stability/Maintenance) * Strategy is like a game plan in sports or an airline’s flight plan. It is important to have a plan that moves towards goal achievement, however, there must be flexibility and adaptability to adjust to internal and external environmental factors * Mission statement: an articulation of the purpose of the organization and the value it creates for customers * Vision: Defines the organization’s long-term goals. The vision statements asks the questions “Where are we going?” * Value Statement: the basic beliefs that govern individual and group behaviour in an organization. * Michael Porter’s Model * Low Cost Provider Strategy: Low cost - in demand in the market * Broad Differential Strategy: High cost - in demand in the market * Best Cost Provider Strategy: Low/High cost - in demand in the market * Focus Niche Low Cost * Focus Niche Broad Differentiation * Competitive Advantage - the characteristics of a firm that enable to earn higher profits that its competitors * Tangible Assets - easiest to value and the only ones that ...
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...companies, the 256 companies increased cash and short-term investments by a combined 78 percent year over year. On average the S&P 500 member’s cash and cash equivalents rose by about 14 percent quarter over quarter to $2.18 trillion, the most on record in nine years of Bloomberg data[1]. By late 2008, even large companies faced the threat that they wouldn't be able partake in the short-term borrowing needed to finance payrolls and the purchase of inventory. The U.S. government took note of the credit freeze and swiftly intervened by bailing out a number of faltering financial institutions, which effectively stabilized the financial markets. Despite drastic measures to prevent an economic collapse, decades of economic growth were lost and there are continuing fears of a double-dip recession as we move forward. In addition to the economic concerns in North America, companies are wary of the possibility of an escalated debt crisis in Europe, which could potentially freeze the lending markets, as was the case in 2008. Some economists believe that the issue is compounded further by uncertainty with regards to U.S. tax policy and stimulus measures. Renewed confidence in the corporate-bond markets has allowed larger corporations to raise a record amount of cash as they capitalize on historically low interest rates (Exhibit 3). In addition to drastic increases in cash flow from financing activities, there have been significant increases in cash flow from operations. Companies...
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...Pfizer – Wyeth Acquisition Abstract The board of Pfizer, the world’s largest drug maker, has agreed to acquire a long-time rival, Wyeth, for $68 billion. The Pfizer-Wyeth merger will create a prescription pharmaceutical company of extraordinary scale. Despite long-term patent and marketing challenges, most industry observers believe Pfizer has little choice but to engage in some type of major acquisition, especially given the recent loss of income on Lipitor. Pfizer needs to reassure its investors that it can get back on track. With having to freeze its dividends, hundreds of layoffs, and stock prices falling, it is imperative to convince the stakeholders that Pfizer will come out of this economic dilemma on top. The acquisition with Wyeth will reduce Pfizer’s negative sales outlook; however, there is only one route to delivering profit growth to investors, and that is by buying growth and cutting costs. Pfizer has announced that it expects to create savings of $4 billion by the third year after closing the acquisition. This is in part due to the 15% reduction in Pfizer-Wyeth’s combined workforce. After the merger, Pfizer will operate through a patient-centric business units in two major areas, biopharmaceuticals and diversified businesses. Its biopharmaceutical business units are emerging markets Where as Pfizer currently has one of the largest sales forces in the industry, Wyeth’s antibiotics and specialty drugs will not require a lot of marketing to consumers...
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...affected by exchange and interest rates. The world market regulates the price of the oil itself and based on the market retailers and businessmen will increase and/or decrease the price of gasoline. These factors can explain why the price at the pump can vary greatly in such a short time. The formula for determining the prices we pay at the pump is: Crude Oil + Refining Costs + Retail Sales/Distribution + Taxes = Gas Price. The two largest components of oil production are the flow of crude oil and the refining process which represents 69% and 6% of the market respectively. Most of the increases in gasoline prices result from a disruption to one of these areas. An example of this theory would be Hurricane Katrina which wiped out drilling operations and oil refineries on the Gulf coast which resulted in higher gas prices in the U.S. and around the world. Months after Katrina oil production resumed on the Gulf coast and gas prices decreased and supply increased to meet the demands of the market. Gas prices in New Jersey are rising even though supplies are high and demand was low. “Since December 2009, the average price of a gallon of gasoline in New Jersey has increased from $2.52 a gallon to $2.94, according to AAA...
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...Create a presentation for the chief financial officer in which you do the following: 1. Summarize the key points of the company’s financial picture that could impact the bank officer’s decision. 2. Explain how any risks pointed out by the bank loan officer could be mitigated by the company. 3. Analyze the ratios that will indicate the ability to repay the principal and interest on the 5-year loan. B. Create a presentation with your recommendations on the European expansion of Custom Snowboards Inc. for the chief executive officer (CEO) by doing the following: 1. Present a historical analysis of past performance. a. Analyze what the historical analysis indicates about future performance. 2. Discuss how the current operations can be improved through better cost controls. 3. Custom Snowboards, Inc. has the opportunity to enter the European market by building a production plant, merging with European SnowFun, Inc., or acquiring European SnowFun, Inc. outright. Licensing the European SnowFun, Inc. technology is also a possibility for the U.S. product and the European line if expansion occurs. After analyzing the data provided select the best option then discuss the internal and external risks that Custom Snowboards, Inc. will face with the plan you chose. a. Recommend strategies and techniques that can be used to mitigate those risks. 4. Based on your selection in #3 discuss the potential returns that must be presented to and considered by the CEO and company...
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...Management Behavior Background This memo is going out to the senior management in light of our company, InterClean, Inc., going into a merger with one of our competitors, EnviroTech, Inc. This memorandum will discuss how our behavior as managers can affect productivity of our current staff, management actions that do or do not align with employment laws, and some best practices we will adopt for the new diverse workforce across the globe. When I refer to management behavior, I mean myself, and the frontline managers who report to me. I will try to address them here as well although this memo is supposed to go to the senior management. This merger is supposed to create new opportunities and larger footprint in domestic and global markets for the new company. Although there is a lot of excitement, all of our stakeholders are envisaging new challenges. One of those challenges is our new sales team will need to adopt different approaches and develop a new organizational structure to align with service-oriented solutions. Impacts on productivity during transition To begin with, let me take this opportunity to thank all of you for all the hard work, dedication and relentless efforts to bring InterClean, Inc. to a milestone where they can think of going global. Our industry has evolved with changing government safety codes and regulations. The new company is going to follow the aforementioned regulations and create world class turn-key solutions for our worldwide customers. Very...
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...Running Head: ANTITRUST MATTERS Antitrust Matters Antitrust Matters What is Antitrust Law Anti-trust law is a law designed to ensure free competition in an open market. The first anti-trust laws have emerged in the United States at the end of 19th century: some companies were so powerful that they had a monopoly or quasi-monopoly in the sector. Companies like Standard Oil and American Tobacco have been dismantled through anti-trust laws. In addition, the antitrust laws prohibit price fixing between competitors. In 1934, Boeing became a large enterprise, producing aircraft engines, carrying mail, dealing with airports and ensuring many airlines. But under pressure from anti-trust law prohibiting manufacturers to operate airlines, its creators sold their holdings and "United Aircraft and Transport" got divided into three entities: * United Airlines responsible for air transport * United Aircraft responsible for manufacturing in the East * Boeing Airplane Company responsible for manufacturing in Western countries. United Aircraft and Transport Corporation is a vertically integrated group, present in all sectors of aviation. In 1934, an anti-trust law is to separate aircraft manufacturers companies carrying mail, and forces the company to split into three entities, * United Air Lines in 2011, which is the largest airline in the world * United Aircraft Manufacturing Corporation, which later became the United Technologies Corporation * Boeing Airplane...
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...coverage provider in the world (AT&T) and the nation’s fastest mobile broadband network, has recently set out to acquire T-Mobile. T-Mobile is one of the world’s largest multi-national cell phone service providers. The T-Mobile wireless company provides the ability for its customers to maintain coverage almost anywhere in the world with the same mobile device and phone number. The merging of these two very powerful companies will potentially increase 4G-network coverage worldwide, to reach more consumers everywhere, and to create over an estimated 95 thousand jobs; many of which would be in America (AT&T). Corruption in technology makes most think of corrupt files and error messages on digital devices. However, corruption also often occurs in the technology industry between digital design firms, computer companies, and even wireless phone service providers. Corruption is the impairment of integrity, virtue, or moral principle (Webster); it occurs in many markets and countries. This report will be focused on corruption in technology, with concentration in the wireless phone service industry. Before wireless phone providers are discussed though, digital design firms, and computer companies will be briefly discussed. This large merger between AT&T and T-Mobile has raised many eyebrows in multiple markets, because if successful, it could be one of the largest technological mergers in history (AT&T). This raises flags because, to many consumers and even manufacturers, it sounds...
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...continued to expand across the globe, with 20 regional offices by the beginning of 2011. In 2007 “Data Unlimited” was acquired by the “We Know” Group, which specialises in providing both academic, professional and commercial business information, as well as being the largest publically owned organiser of events and exhibitions. During the one-year period from January to December 2011 “Data Unlimited” became integrated with “Business Intelligence”, a division of the “We Know” group, with the intention that it would operate as part of the professional and commercial information business (PCI) that makes up 30% of the “We Know” Group. Before 2007, “Data Unlimited” had operated as a private limited company, and until December 2011, when the merger with “Business Intelligence” was completed, it had operated independently as part of the “We Know” group. For trading purposes the name will still be retained as it is known and trusted in the market, but the back office functions and headquarters offices in central London are to be shared with “Business Intelligence”. Today, “Data Unlimited” has a reputation as a leading provider of online database and analysis services across 6 major key industry sectors, including automotive, consumer markets,...
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...Managing Change Paper III Steptoe & Johnson, LLP (Steptoe) made the decision that there was a need for change within the company. The revenues within the company were of great concern and the partners felt the issue needed to be dealt with immediately. Steptoe failed to create a shared vision within the company that leads to a difficult change over. Steptoe needed to create a sense of urgency and separate the past issues to make the changeover successful. The leadership needed to take responsibility and set a structure for everyone to follow in order for the change take effect and maintain after the transition was complete. In this paper, we will discuss the needs for change within the organization and the proper steps that needed to be done to complete an effective change. Analyze the Need for Change Analyzing the need for change is a crucial step in the change process. Without proper analyzing why must change result in failure from the very beginning. Steptoe & Johnson, LLP made the assumption that the need for change was a necessary component that needed to be addressed and imposed immediately. The decision was primarily based on discussions amongst partners of the firm in respect to payroll and bonus issues that they were not pleased with. The partners decided that in order eliminate these issues, the firm as a whole would need to cut back as soon as possible. This was not a discussion that discussed with the partners and the management team’s it was at the...
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...The regulation of Monopolies & the Microsoft Trial Research Paper Macroeconomics By: Ashleigh Magliano Introduction: Larger companies can become big threats to other smaller companies that are in a given market due to their power and innovation. Sometimes this can become more than a threat, and it turns to no competition at all between the markets due to the monopolization of a company. A company becomes a monopoly when it gains the control of the industry and has obtained the ability to change the output prices in that specific industry. With such power this opposes a threat to other businesses. The government has set up specific regulations for monopolies to control what they sell, how they sell it, and what services are allowed for consumers. The importance of regulating monopolies is to keep the market alive, to allow freedom for other smaller businesses. This keeps up competition in the market, and also keeps the monopolies from doing anything unreasonable. This has led to numerous trials on major companies, one of the biggest cases would be the trial against Microsoft INC. Acts for Regulating Monopolies: In 1890 the Sherman Antitrust act was put into effect, named after the Senator of Ohio, John Sherman and was the first component for congress to prohibit trust.(General Records of the United States Government, Record number 11) The Sherman Act intended by congress to help keep up competition in markets. Unfortunately the act was written to vague there were...
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...Mon Dec 3 16:27:50 2012 -- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and Conditions of the license agreement available at http://heinonline.org/HOL/License -- The search text of this PDF is generated from uncorrected OCR text. -- To obtain permission to use this article beyond the scope of your HeinOnline license, please use: https://www.copyright.com/ccc/basicSearch.do? &operation=go&searchType=0 &lastSearch=simple&all=on&titleOrStdNo=0012-7086 FAIRNESS OPINIONS: HOW FAIR ARE THEY AND WHAT CAN BE DONE ABOUT IT? LucIAN ARYE BEBCHUKt AND MARCEL KAHAN* INTRODUCTION Fairness opinions have become a regular feature of every major corporate control transaction. Whether in negotiated mergers,1 freeze-out mergers, 2 hostile tender offers, 3 friendly tender offers,4 self-tenders, 5 leveraged buyouts, 6 negotiated share repurchases, 7 or negotiated sales of treasury stock,8 directors seek the blessing of investment banks before approving transactions or adopting defensive measures. These banks give their blessings in the form of fairness opinions, which usually consist of short letters that state an opinion about whether a proposed transaction is "fair" or "adequate." 9 In addition, the banks often give presentat Professor of Law, Harvard Law Schaool; Faculty Research Fellow, National Bureau of Economic Research. * Visiting John M. Olin Scholar, fall 1988, Harvard aw School; Associate, Kramer, Levin, Nessen, Kamin & Franke. For financial...
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...Regulation in our nation today – too much or not enough? That is the question this paper addresses. The Securities Acts of 1933 and 1934, the Foreign Corrupt Practices Act of 1977, along with the Sarbanes Oxley Act will be highlighted and discussed. The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some serious questions about the effectiveness of how the markets were being governed. Because of the turmoil surrounding the investing community at this time, the federal government had to bring back stability and investor confidence in the overall system. In general, the legislation was enacted as the need for more information within and about the securities markets was acknowledged. The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission. Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement. Under this act, the seller of a security is liable for making any material misstatement or omission, either oral or written, in connection with the offer or sale of a security. The Securities Act of 1934 was enacted to ensure investors received ongoing information about public companies with publicly traded...
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...change was not even talked about and those companies are no longer in business. Many companies are under severe economic pressure and change is inevitable. Change is the only way for some. In today’s society we have take-over’s, down-sizing, mergers, joint ventures etc. as companies try to grow. Some companies focus on the question “what do we do to make our company grow”. “How many employees are we going to affect?” Let’s focus on my former employer Ford Motor Credit. Their thoughts back in 2003 was total quality is a way of life. This was the main strategy in order to bounce back financially, and to gain their credibility back. A. The strategic change initiative allows us to focus on four areas. a. Initiate Effort or gathering support b. Launching or agreeing on an approach c. Executing or doing what it takes d. Gaining Momentum or communicating results APPLICATION ANALYSIS: The Company of Focus in this analysis is Ford Motor Credit. There was a point and time when Ford had lost its credibility with the many Americans. There were many lawsuits against the company. There was an ongoing issue with the firestone tires that were put on each Ford SUV. The claims were that the tires blew out and caused many deadly accidents. Ford had to adhere to the lawsuits but yet still run the multibillion dollar company. How do you do that with thousands of employees? Downsize is the first thing and then reorganization. Ford cut many jobs...
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...10 days. • b. We don’t offer refunds on returned merchandise that is soiled. • c. Because we are temporarily out of Baby Cry dolls, we won’t be able to ship your order for 10 days. • d. You failed to specify the color of the blouse that you ordered. • e. You should have realized that waterbeds will freeze in unheated houses during winter. Therefore, our guarantee does not cover the valve damage, and you must pay the $9.50 valve-replacement fee (plus postage). 5.5 Audience Relationship: Bias-Free Language Rewrite each of the following to eliminate bias: • a. For an Indian, Maggie certainly is outgoing. • b. He needs a wheelchair, but he doesn’t let his handicap affect his job performance. • c. A pilot must have the ability to stay calm under pressure, and then he must be trained to cope with any problem that arises. • d. Candidate Renata Parsons, married and the mother of a teenager, will attend the debate. • e. Senior citizen Sam Nugent is still an active salesman. 5.10 Message Composition: Selecting Words As you rewrite these sentences, replace the clichés and buzzwords with plain language (if you don’t recognize any of these terms, you can find definitions online): • a. Being a jack-of-all-trades, Dave worked well in his new general manager job. • b. Moving Leslie into the accounting department, where she was literally a fish out of water, was like putting a square peg into a round hole, if you get my drift. • c. My only takeaway from the...
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