Domination_FEB_ver2.0

VOLUME– IV ISSUE- 02
Domination
Managers
OR
Managers
FEBRUARY2014
NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Editorial………………………………………………………
02 | DOMINATION, FEBRUARY 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Dear Readers,
It's February, the shortest month of
the year; bursting forth from the
romance of Valentine's Day to the
auspicious occasion of Basant Pan-
chami the mood swings from ex-
citement to reverence. At the exo-
dus of yet another chilly winter, we
bring another edition of the DoMi-
nation.
This edition features a number of
articles from a diverse range of top-
ics. The cover story of this edition is
on a very interesting topic of
“Hippocratic Oath for Managers”,
written by Kunal Bansal. The author
presents professional ethical stand-
ards with a different point of view.
Another interesting piece is on “Pro
-Globalization vs. Anti-
Globalization” written by Saurabh
Singh. It talks about some of the
views from different groups of peo-
ple on globalization and its pros
and cons. This edition contains a
well written article on the “Mergers
and Acquisitions”, authored by Su-
deshna Naskar. The author pre-
sents an overview of the reasons
and need for mergers and acquisi-
tions.
It is always good to listen to indus-
try experts and to learn about their
journey. The current edition con-
tains an interview of Anupriya Goel.
Anupriya is a DoMS alumnus of
2000 batch and currently working
in Samsung R&D, California. The
edition also includes the success
story of Pierre Omidyar, founder of
the eBay.
DoMination is never short of the
fun quotient. This edition features
the next round of quiz for them
who love brain twisting. The edition
also has a report on guest session
on Private Equity held at DoMS, IIT
Roorkee. We hope that the present
edition of DoMination will be to
your liking. Your thoughts and feed-
back are always welcomed and ap-
preciated. Feel free to write to us
for any input. Happy Reading...
- Regards
Team DoMination
………………………………………………………

Contents
Faculty Adviser
Dr. R.L. Dhar
Team DoMination
Apurva Sood
Arun George
Gaurav Mittal
Mehul Lala
Nilaya Shankar
Rohan Krishnan
Sudeshna Naskar
Vignesh B
Designing Team
Ashish Kumar Jaiswal
Dhruv Kadian
Rakesh Ranjan Kumar
Roorkee- 247 667, India
Tel: +91-1332-285014, 285617
Fax: +91-1332-285565
Email: domination.doms.iitr@gmail.com
Website: www.iitr.ac.in/departments/DM/Pages/Index.html
For private circulation only
DEPARTMENT OF MANAGEMENT STUDIES
INDIAN INSTITUTE OF TECHNOLOGY
ROORKEE
04
26
06
10
Qutopia
16
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
16
03 | DOMINATION, FEBRUARY 2014
13
09
15
19
DoMS da Evince Success Story
Hippocratic Oath for managers
Pro-Globalization Vs. Anti-Globalization Chlorophyll
Mergers and Acquisitions
Spotlight

The oath taken by doctors to
fulfil their duty in any condition to-
wards another life and humanity de-
fines a framework that shapes their
orientation towards society. We are
living today in a very brittle state of
economy and for that matter politics.
Each and every day, managers who
run the big corporations have to take
decisions beneficial for their organi-
zations. And in these times, the mor-
al conduct expected by them may
sometimes be put aside for the
“higher good”, as they say. The point
here is whether they should be
forced to take Hippocratic Oath to
instil in them a sense of morality to-
wards others!
Hippocratic Oath as Wikipe-
dia puts it is “one of the most widely
known of Greek medical texts. It
requires a new physician to swear
upon a number of healing gods that
he will uphold a number of profes-
sional ethical standards.”
Generally taken by medical profes-
sional during convocation, this oath
helps them to remember their duty
towards society. In modern times, it
has since changed a lot but the crux
remains the same.
Hippocratic Oath taken in Weill Med-
ical College, Cornell University –
“I do solemnly vow, to that which I
value and hold most dear:
That I will honor the Profes-
sion of Medicine, be just and gener-
ous to its members, and help sustain
them in their service to humanity;
.
.
.
I now turn to my calling,
promising to preserve its finest tra-
ditions, with the reward of a long
experience in the joy of healing.”
But the question arises,
whether this sort of oath should be
included in the management curricu-
la or not. In 1995, Sir Joseph Rotblat,
in his acceptance speech of Nobel
Peace Prize, suggested a Hippocratic
Oath for scientists. And since then
the talk has accelerated to a new
level to include it in each profession.
Harvard Business School students
Cover Story
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………

………………………………………………………
have already taken a lead in this
matter. The oath they have formulat-
ed and its signatories can be seen on
the website mbaoath.org
When the political scenario
of our country is on the turmoil and
economic revolution is on the verge,
these kinds of things prepare us to
follow what we stand true. As talked
by Ms.KiranBedi in her speech in IIT
Roorkee, ethics and moral duties
should be part of the curricula. A per-
son can oppose this on the basis of
necessary govt. lobbying, business
profits and cut-throat race to move
ahead but when in doubt, it’s only
the faith that makes us do things
which cannot be done otherwise.
And if we put the seeds of morality in
the school itself, the effect will be
longing. Facing a difficult scenario is
everyday situation for us managers,
and if we stick to what is correct in-
stead to what is needed defines the
kind of person we are. And it takes us
a long way not only in our career but
in personal life too.
Recently, we have seen the
likes of Phaneesh Murthy – ex direc-
tor of iGate corp., Vikram Pandit- ex
CEO of citigroup, Ramalingam Raju –
ex Chairman of Satyam Computer
Services and many more. And it be-
comes evident to not to look away.
So, my view is Hippocratic Oath is
absolutely necessary to put things in
perspective. Each B-School should
takea lead in determining the con-
tents of their oath. This might not
help the veterans already there in
the field but for newcomers like us, it
will give us a chance to uphold what-
ever we held true, and it will con-
stantly remind us the way our con-
duct should be in difficult situations.
The short version of MBA
Oath is as given below (by mba-
oath.org project)-
As a manager, my purpose is
to serve the greater good by bringing
people and resources together to
create value that no single individual
can create alone. Therefore I will
seek a course that enhances the val-
ue my enterprise can create for soci-
ety over the long term. I recognize
my decisions can have far-reaching
consequences that affect the well-
being of individuals inside and out-
side my enterprise, today and in the
future. As I reconcile the interests of
different constituencies, I will face
choices that are not easy for me and
others.
Therefore I promise:
 I will act with utmost integrity
and pursue my work in an ethical
manner.
 I will safeguard the interests of
my shareholders, co-workers, cus-
tomers and the society in which we
operate.
 I will manage my enterprise in
good faith, guarding against deci-
sions and behaviour that advance my
own narrow ambitions but harm the
enterprise and the societies it serves.
 I will understand and uphold,
both in letter and in spirit, the laws
and contracts governing my own
conduct and that of my enterprise.
 I will take responsibility for my
actions, and I will represent the per-
formance and risks of my enterprise
accurately and honestly.
 I will develop both myself and
other managers under my supervi-
sion so that the profession continues
to grow and contribute to the well-
being of society.
 I will strive to create sustainable
economic, social, and environmental
prosperity worldwide.
 I will be accountable to my peers
and they will be accountable to me
for living by this oath.
This oath I make freely, and upon
my honour.
05 | DOMINATION, FEBRUARY2014
By-
Mr. Kunal Bansal
DoMS, IIT Roorkee(2013-2015)
kunalbansal17@gmail.com

………………………………………………………
In today’s world, economies are
evolving at a very fast pace and in a
very un-predictable manner. Today
people are more connected with
each other because of Telecommu-
nication & Technological advance-
ment. Globalization is the new defi-
nition of trade across world in
which Good & Services, Capital are
moving from one place to another
in no time and with fewer barriers.
Globalization is defined as the pro-
cess of international integration
arising from the interchange of
world views, products, ideas, and
other aspects of culture. Advances
in transportation and telecommu-
nications infrastructure, including
the rise of Internet, are major fac-
tors in globalization.
There are two schools of thoughts
on Globalisation; One group con-
sists of those who think globaliza-
tion is good for the world econo-
mies especially the third world
economies and have a lot of bene-
fits, they are called Pro-Globalists
and the others are those who think
globalization is bad and they stand
against it and are called Anti-
Globalists.
 Pro-Globalist views on
Avantages of Globalization.
Pro-globalists say that globalization
has lot of advantages for econo-
mies and its people. It has the po-
tential to resolve some big eco-
nomic problems like poverty. Fol-
lowing are the positive views of
globalization:
Free Trade Economies:
Free trade is a policy in which
acountry does not impose taxes,
duties, subsidies or quota on the
import/export of goods or services
from other countries. This allows
consumers to buy goods and ser-
vices, at a comparatively lower
cost.
Peaceful Relations:
Countries are moving to bilateral
trade relations with each other in
order to boost their economy, leav-
ing behind any bitter past experi-
ences if any. Nations now try to
raise capital and strengthen their
position in international trade, ra-
ther than hosting a war. Hence,
globalization has induced interna-
tional peace and security in a big
way.
Global Connectivity & New Mar-
kets:
Perspective
Pro-Globalization Vs. Anti-Globalization

………………………………………………………
With the use of the Internet, the
world has definitely become a
smaller place.
This has been further boosted by
Companies, which have started to
invest in different countries. The
Expending markets have helped
countries to raise money by the
means of foreign domestic invest-
ment.
Employment Opportunities:
One of the most advantageous fac-
tors of globalization is that it fos-
ters the generation of employment.
This happens due to the emergence
of new companies and new mar-
kets, requiring skilled as well as un-
skilled Labour. This also helps to
improve the standard of living.
Quality Products:
As the companies compete with
each other to gain confidence of
the customer, it becomes im-
portant for the companies to focus
on high quality goods and services,
in order to have strong foothold in
the market. Customer gets good
products at cheaper rates along
with options to select from.
Globalization also has effects on
Environment protection, boosting
Travel and tourism.
The topic is incomplete without
considering the negative effects of
globalisation on the world and on
its economy.
 Disadvantages of Globalization
High Inequality:
The first and for-most problem ad-
vocated by Anti-globalists is that
the globalization has increased ine-
quality .It has made the rich richer
while making the poor poorer and
the gap between them is increas-
ing.
Unemployment in Developed Na-
tions:
Globalization has increased the Un-
employment rate in most of the
developed nations through the con-
cept of outsourcing. The US /UK
have outsourced the Manufactur-
ing to China and India.
Job Insecurity in Market:
Globalisation has given rise to out-
sourcing affecting unemployment
and job security factors in devel-
oped/ outsourcing nations e.g. US,
Europe. Outsourcing has created a
culture of job insecurity.
Multinationals affect developing
nations’ political Decision making :
Multinational corporations which
were previously restricted to com-
mercial activities are increasingly
influencing political decisions.
Exploitation of Labour
Globalization has led to the exploi-
tation of labour. Human Trafficking,
Child Labour, working in inhumane
conditions or ignorance of safety
standards are all consequences of
globalization.
Apart from these, the consequenc-
es of Globalization also include ex-
ploitation of natural resources lead-
ing to their faster Depletion, defor-
estation, increased social injustice,
etc.
 Globalization in my point of
view
Globalization in my view is very im-
portant tool which nations can use
for their development by recognis-
ing their positive terms of trade
and utilising it fully to develop oth-
er areas as well subject to not ac-
cepting unfavourable conditions of
other nations. According to Amart-
ya Sen, a Nobel-Prize winning econ-
omist, Globalization “has enriched
the world scientifically and cultural-
ly, and benefited many people eco-
nomically as well”.
On the other hand, Globalisation
has not been found favourable for
developed economies. Globalisa-
tion has been criticised by econo-
mists who are against the concept
of free-market economies. Econo-
mists like Joseph Stiglitz and Ha-
Joon Chang are against globaliza-
tion. They say that Globalization
has been perpetuating inequality in
the world rather than reducing it.
Some agree that they may have a
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE07 | DOMINATION, FEBRUARY 2014

………………………………………………………
point. The International Monetary
Fund admitted in 2007 that ine-
quality levels may have been in-
creased by the introduction of new
technology and the investment of
foreign capital in developing coun-
tries. Others, in developed nations,
distrust globalization as well. They
fear that it often allows employers
to move jobs away to cheaper plac-
es. In France, “globalization” and
“delocalization” have become de-
rogatory terms for free market poli-
cies. An April 2012 survey by IFOP,
a pollster, found that only 22% of
French people thought of globaliza-
tion as a “good thing” for their
country.
If we take the example of the iconic
Indian IT company, Infosys, which
believes that when market opens
for trade with developed countries
then jobs will be created for the
middle class or the educated, the
process would also benefit the en-
tire system of support services for
these employees since they have to
spend money on their basic neces-
sities and everyday needs. Moreo-
ver, the creation of wealth would
not be restricted to capital gains
alone but would also benefit those
who produce goods and services
for consumption. This will up-lift
other sectors of the economy as
well, which in- turn increase the
national consumption and also the
GDP. This positive effect can be
seen in cities like Bangalore, Delhi-
NCR, Gurgaon ,Pune etc. where the
presence of multinationals and In-
dian service sector companies has
led to a flourishing economy for the
locals.
We can say that the impact of glob-
alization is visible and affects large-
ly the politics and the economy of
the country but its effect on the
mindset and the culture is noticea-
ble gradually in the way people
think and react. Now our counter-
parts in other nations or people in
other countries have started ac-
cepting Developing nations’ views,
their Ideas, culture and have fully
understood our strength.
Globalization has helped the world
to deal with crises like Unemploy-
ment, Poverty and Human Traffick-
ing. It will help us to raise the glob-
al economy only when the involved
power blocks have mutual trust
and respect for each other's opin-
ion. The way we have developed in
the last decade, globalization
seems to have given us good re-
turns. Globalization has made the
life of the third world citizens a
completely different story. There
are so many foreign companies
that have made way to Orient and
have made India a brand name all
over the world.
By-
Mr. Saurabh Singh
singhsaurabh88@gmail.com

Chlorophyll
………………………………………………………Its wise to learn, its GOD like to create
I loved the silent hour of night,
Sitting by the river side
Staring your eyes in the moonlight,
Was it you that made the night
or the moon that made the night seem so bright.
Look at me now,
I am there, where it all began .
The moon is still at her full, and, riding high,
Floods the calm fields with light .
The airs that hover in the summer sky ,
Are all asleep to-night .
But now I see this moonlight unfold a mystery ,
I see You with me
Illusion and reality, a rare symphony .
Now there are no seasons to wail,
There is no rain in winter pale.
There is nothing here just the Moon and me ,
With this universal surround
And the pitch black of light
In this dimension of sound.
I look at this Moon and make a wish ,
May your slumber end on a shiny night ,
May the Moon be shining bright and you be riding high ,
Just a possibility how it might ,
There is only space for the images in mind .
I wish to be with you..atleast in your dreams
I wish this moon to be by our side
But it’s not to be, it’s not to be
Somehow it seems, you made up the life in me
Now I find this moon staring at me
Eyes fixed, motionless it leans
By-
Ms. Archana Singh
archana.singh999@gmail.com

Qutopia………………………………………………………
It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the
best Biz Quiz Tidbits to wreck your brains! Rush in your answers to domination.doms.iitr@gmail.com before
21st March 2014. The winner will have their names published in the next issue. Also, person getting the high-
est score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.
Powered by Buzzing Crowd - Quizzing club of DoMS, IIT Roorkee
1. Which brand has retained its spot as India’s most valuable brand, according to Brand Finance Glob-
al 500, an annual study conducted by a brand valuation consultancy called Brand Finance?
2. Which smartphone maker last week of February launched 5 models under the new ‘Kochadaiiyaan
series’?
3. Which state has unveiled a 20km free Wi-Fi zone, the longest across the globe?
4. The Corporate Affairs Ministry has directed the Registrar of Companies to ensure that no company
be registered with which word as part of its title unless it is a Government company?
5. PepsiCo Inc has moved the Delhi High Court against the release of which film on trademark viola-
tion?
6. Which company will hive off its products, platforms and solutions (PPS) business into a separate
subsidiary called Edge Works at the beginning of the next financial year?
Section A
(1 Point for each correct answer)

Qutopia
1. Identify what is different about this
currency.
3. Identify the connect in the collage.
4. Name the company that used this advertise-
ment to encourage women to vote.
Section B
(2 Point for each correct answer)
………………………………………………………
2. Name the company that uses this add.

Qutopia………………………………………………………
Section A
1. INS Vikramaditya, Admiral Gorshkov
2. Dena Bank
3. K. Radhakrishnan, Chairman of ISRO
4. UCO Bank
Winner of January edition
Agam Gupta
DoMS, IIT Roorkee (2013-15)
12 | DOMINATION, FEBRUARY 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Answers for January edition
SECTION B
1. Jaguar
2. Tesco
3. World Wide Fund for Nature

DoMS-da-Evince
Anupria Goel is a 2000 batch pass out of DoMS and
presently working at Samsung R&D, San Jose,
California.
1. Please give us a little insight
about your journey prior to joining
DoMS?
I pursued my degree in commerce
from Meerut University after com-
pleting my schooling from the Modi
School. In January 1998, I visited
Roorkee for the very first time and
instantly fell in love with the UOR
campus (Well that’s what it was
called back then!) The only thought
that crossed my mind was “Wish I
could study here”! In the summer of
1998, UOR introduced its first MBA
program and well, I got a chance to
live my dream, I started my journey
at DOMS in July!
2. What different type of roles have
you played (been a part of) after
your journey from DoMS?
Being the first MBA batch to
graduate from IITR, we were put to
strict programs or regime, as I recall!
DOMS prepared us for the tough cor-
porate world outside! After gradua-
tion, I joined the Citigroup in Mumbai
and worked in their Finance Opera-
tions division for 2 years. After com-
ing to the US in 2003, I switched my
career to Human Resources and ever
since then, I have played various
roles in HR i.e. Training, Staffing, and
Vendor Management etc. I am cur-
rently leading one of the recruiting
teams at Samsung Research America
(R&D) in the Silicon Valley.
I still remember, Prof Harish Midha,
our visiting Organizational Behaviour
professor from Canada, once told me
“Anu, you are cut out only for HR
roles” J - Well, I cannot agree more!!
3. How is R & D different from other
areas in terms of work environ-
ment?
Being a part of Samsung R&D
gives me a feel of working in a start-
up environment, where things
around you are very ambiguous, and
people are just stumbling upon vari-
ous ideas to design, innovate and
develop crazy concepts and innova-
tive products, that enhance the com-
petitiveness of a company. Just to
give you an example – I hire for
teams that came up with the idea/
concept/design of the Samsung Gear
and now, Samsung Fit! It’s fun to be
a part of such innovative teams!
4. Samsung topped in R&D spending
as per the industry report, Is this
direct indication of spending for mo-
bile division or its focusing on other
sectors as well?
Samsung is an industry lead-
er not only in the Mobile segment,
but also in Smart TVs, Home appli-
ances, Wearable, tablets, Cameras.
Samsung is venturing into
Healthcare, Education and many
more new areas.
(On a separate note, did you know,
the primary contractor for Burj Kha-
lifa was Samsung C&T of South Ko-
rea )
5. What advice would you like to
give to students who are interested
in joining this field?
If you genuinely feel ‘People’
are the most important assets of a
company, if you value relationships
more than your targets, and if you
love talking to people, then explore
the wide field of HR. Recruiting is an
integral and one of the most im-
portant and highly visible area of HR.
I recruit great professionals for one
of the largest industry giants in the
world and one thing that keeps me
going is my passion and love for my
job! (Trust me; I don’t hate Monday
mornings J!!)
………………………………………………………

DoMS-da-Evince
………………………………………………………
6. How has IIT Roorkee and in partic-
ular DoMS has helped in your ca-
reer?
In a world, where you are
competing with millions of qualified
professionals, you definitely need a
USP! In my recent conversation with
my managers, she revealed that they
hired me over other great candidates
just because of the fact that I am an
IIT graduate. IIT is recognized across
the globe for its prestige and high
quality education. I truly owe a great
part of my success to IITR/DoMS.
7. Which thing do you miss most
about IIT Roorkee?
Roorkee is not an event or an
instance of my life, it’s an experi-
ence! Whenever I look back at the
days I spent at IITR, all the memories
come rushing by! I can never forget
my wonderful professors / men-
tors, my amazing batch mates, the
late night group discussions – (well,
more gossips and crib sessions than
GDs), Sarojini Bhavan and the friend-
ly hostel inmates, the music section,
the lush MBLs, Satkar, Thomso, our
winning trips to IIML and IMT …
memories are endless …memories I’ll
cherish forever!
I am a part of the IITR Alumni asso-
ciation in the Silicon Valley and keep
meeting folks who graduated in
1960s to those who graduated like
last year – such is the heritage of
IITR!
Special thanks to Dr MP Jain, Prof
Nangia / Prof Midha / Prof Saini / Dr
Bhattacharya, Dr Rahman, Prof Vivek,
Prof Shiri and everyone who made us
strive to excellence. We planted the
seed of DoMS in 1998 and feel so
happy to see it getting nurtured by
all our rock star juniors! We feel
proud to see our alums creating an
impact in India and across the globe.
IITR / DoMS is an amazing place –
enjoy your experience!
“Formal education
will make you a
living;
self-education will
make you a
fortune.”
Jim Rohn
………………………………………………………

Success Story
Pierre Morad Omidyar is a
French-born Iranian American entre-
preneur and philanthropist, who is
the founder and chairman of the
eBay auction site. In 1995, at the age
of 28, Omidyar began to write the
original computer code for an online
venue to enable the listing of a direct
person-to-person auction for collecti-
ble items. He created a simple proto-
type on his personal web page, and
on Labor Day, Monday, September 4,
1995 he launched an online service
called Auction Web which would
eventually become the auction site
eBay.
It was hosted on a server Omidyar
had created for information on the
ebola virus. The first item sold on the
site was a broken laser pointer.
Omidyar was astonished that anyone
would pay for the device in its bro-
ken state, but the buyer assured him
he was deliberately collecting broken
laser pointers. Similar surprises fol-
lowed. The business exploded as cor-
respondents began to register trade
goods of an unimaginable variety.
By 1996, when Omidyar signed a li-
censing deal to offer airline tickets
online, the site had hosted 250,000
auctions. In the first month of 1997,
it hosted 2 million. By the middle of
that year, eBay was hosting nearly
800,000 auctions a day. In 1997,
Pierre Omidyar changed the compa-
ny's name to eBay and began to ad-
vertise the service aggressively. The
word "eBay" was made up on the fly
by Omidyar when he was told that
his first choice for his web site,
"echobay", had already been regis-
tered. Not wanting to make a second
trip to Sacramento, he came up with
"eBay".
In September 1998, eBay launched a
successful public offering, making
both Omidyar and Skoll billionaires.
As of July 2008, Omidyar's 178 mil-
lion eBay shares were worth around
$4.45 billion. Omidyar is also an in-
vestor of Montage Resort & Spa in
Laguna Beach, California.
In 2010, Omidyar launched online
investigative reporting news service
Honolulu Civil Beat covering civic
affairs in Hawaii. The site has been
named Best News Website in Hawaii
for three consecutive years.[14] On
September 4, 2013, Honolulu Civil
Beat started a partnership with The
Huffington Post, launching the web-
log's latest regional addition, Huff-
Post Hawaii. In 2013 Omidyar an-
nounced the creation of First Look
Media, a journalism venture which
launched February 10, 2014 with The
Intercept, and includes journalists
such as Glenn Greenwald, Laura Poi-
tras, Jeremy Scahill, Dan Froomkin,
and Jay Rosen.
According to Forbes, Pierre Omidyar
is worth $8.5 billion (US) as of Sep-
tember 2013, making him the 123rd
richest person in the world
Pierre Morad Omidyar is a French-born Iranian American
entrepreneur and philanthropist, who is the founder and
chairman of the eBay auction site
………………………………………………………

Regardez I’economie
Most companies desire to
grow by offering better product, ser-
vice and customer care. Those com-
panies with more insight into cus-
tomer needs and preferences and
who utilize more innovative thinking
is likely to attain growth they seek.
Yet some companies also
give thought to accelerating their
growth and using their capital better
by turning to acquisitions sometimes
buying a company seems a better
solution than competing with it. Ac-
quisitions are often essential for en-
try into related product. BHP Billi-
ton’s acquisition of Petrohawk for
$12.1 billion strengthens the mining
giant’s quest for natural gas asset.
Companies frequently seek exclusive
control of innovative components
and systems that enhances their
product or service line. For example
recently facebook bought whatsapp
for $19 billion.
Why Acquire or Merge
No company can be success-
ful alone. Organizations will always
have to relate to other organizations
in one way or another. They have to
buy from suppliers and sell to and
through distributors. They must re-
late to a number of government
agencies and regulate tax or send out
bids. The selectivity and care with
which a firm forms relation with oth-
er firms determine its success. Gen-
eral Motors for example works with
different companies those supplies
engines, dashboard system and other
car components.
Every company will occasion-
ally consider whether to continue a
market based relationship with an-
other company or actually take it
over or even consider a merger. An
acquisition consists of taking over
absolute ownership or a controlling
share of another company and either
absorbing it or letting it operate on
its own with some changes. However
a merger requires two companies
that decide to form a new legal com-
pany which is the merged company.
Some successful mergers are Exxon
Mobil and JPMorgan Chase and the
troubled merger of Alcatel and Lu-
cent.
………………………………………………………

General Motors has made
many acquisitions over its lifetime
buying both its competitors and sup-
pliers.GM acquired several compo-
nent companies of Delphi Automo-
tives worldwide steering business.
This move gave GM more control of
vital electronic supplies to fit its long
range plans. Acquiring and a supplier,
distributor or even a competitor
gives the company ownership power
instead of jus relying on market pow-
er.
Followings are the specific reasons
why a firm might want to acquire or
merge with another firm.
 Increase its sales revenue market
share or profitability by taking
over a competitor (GM’s acquisi-
tion of Cadillac, Pontiac, Chevro-
let, oldsmobile and another auto
brand)
 Enter into a new business or
market (Proctor & Gamble’s
takeover of Gillette)
 Enter into a new geographical
area (Cadbury had very strong
presence in UK and common
wealth countries where Craft had
weak presence)
 Increase in ownership of supply
inputs (Sany - china’s leader in
construction) acquired German
concrete pump manufacturer
Putzmeister to improve its prod-
uct quality)
 Increase its efficiency by reduc-
ing job redundancies and oper-
ating costs(Both steel companies
Arcelor Mittal and cement maker
Cemex have consolidated their
industry worldwide for greater
efficiency)
 Increase its economy of scale or
scope (United Airlines’ merger
continental Airlines to become
the world’s largest airline)
 Enlarge its brand portfolio (Coca-
Cola has grown by acquiring car-
bonated soft drink brand like
Sprite as well as juice brands like
Tropicana and water brands like
Dasani
 Increase its profits by opportun-
istically buying actual or poten-
tially profitable companies (The
holding company of Berkshire
Hathaway under Warren Buffet is
constantly seeking profit making
opportunities. It has acquired
100 percent ownership of over
40 companies in diverse indus-
tries like Acme Brick, Dairy
queen, Netjets, Helzberg Dia-
monds etc.)
The desire to take over an-
other company is not always consid-
ered a friendly move in fact one can
distinguish between a friendly takeo-
ver and a hostile takeover. In a
friendly takeover the acquiring com-
pany notifies the target companies
owners or board of directors that it
would like to buy the company. If the
board believes that selling the com-
pany would serve the stockholders’
or owners’ best interest they will
then negotiate an agreement.
In a hostile takeover howev-
er the board or owner is unwilling to
sell the company. The acquirer then
engages in number of tactics to
achieve the sale in spite of the target
company’s resistance. The acquirer
can make a tender offer in
public to pay the company much
more price than current market
price. If the company still resists then
acquirer can engage in proxy fight to
persuade enough share holders to
vote in a new management that will
………………………………………………………
Picture Source: Bearingpoint.com

approve the takeover. Alternatively
the acquiring company can quietly
purchase enough stock in open mar-
ket to vote in new management that
is receptive to the takeover. The
problem with the hostile takeover is
that the acquirer does not gain all
the information about the target
company creating vulnerability to
hidden risks. A few famous hostile
takeovers include HP’s hostile takeo-
ver of Compaq and Krafts’ hostile
takeover of Cadbury
Whether friendly or hostile
there are questions in any takeover.
Is the price fair? What are the esti-
mated costs? Can the acquirer afford
the acquisition, raise the necessary
money, and reintegrate the money
and the acquisition if the company
goes badly? Will the acquirer be able
to keep the acquired firms talent,
clients and suppliers? What are the
technology risks? Will the acquired
company be broken into parts to sell
off?
One must think over all this
before going for an acquisition or
merger. To overcome such kind of
situations an acquiring company
must perform due diligence that
goes all the way from checking with
acquired firms’ customers and sup-
pliers, and making sure that acquired
firm is not carrying any hidden in-
debtedness, responsibilities or com-
mitments. Some uncertainty will al-
ways exist about a variety of matters:
whether the acquired firms’ manager
and employees will stay with the
new company and be easy to man-
age and whether the acquired firm’s
customers will continue to work with
new management or switch their
purchase to another firm. The reason
to go for mergers or acquisitions is to
capture synergy that happens when
two firms may compliment each oth-
ers in skills such as technical, mar-
keting or financial. One should exer-
cise care in choosing a partner, mak-
ing sure that terms are spelled out
and are understanding in order to
minimize the chance of conflict or
misunderstanding.
By-
Ms. Sudeshna Naskar
145arks145@gmail.com
………………………………………………………

Spotlight
Every entrepreneur wants to
see his company making it to Fortune
500 list one day but to achieve that
they need appropriate funding at the
right point of time. For management
students and future entrepreneurs, it
is vital to have a sound knowledge
about this aspect of business. Fortu-
nately, students of DoMS, IIT Roor-
kee got such an opportunity to learn
about the same. A Guest Lecture was
organized on the topic “Private Equi-
ty/Venture Capital: In Context of
Funding Options” on 5th
February
2014 in DoMS. Lecture was delivered
by Mr. Samir Inamdar and Mr. Hem-
chandra Javeri. Students were eager-
ly waiting for this session and were
excited about it.
Currently, Mr. Samir Inamdar
is working as MD & CEO, Forum Syn-
ergies PE Fund Managers. Previously,
he has over 25 years of corporate
experience in different roles in com-
panies such as Tyco electronics, Gen-
eral Electric etc. He has done me-
chanical engineering from Mumbai
University and Post Graduate Diplo-
ma in Management (PGDM) from
Indian Institute of Management
(IIM), Calcutta. Mr. Samir Inamdar
was accompanied by his colleague
Mr. Hemchandra Javeri. Mr. Javeri is
co-founder of Forum Synergies along
with Mr. Inamdar. Mr. Javeri also has
over 25 years of corporate experi-
ence. He has held many roles across
wide ranging industries in the past.
Mr. Javeri completed his Bachelors in
Commerce from Sydenham College,
Mumbai and then went on to com-
plete PGDM from IIM, Calcutta.
The session took off with a
welcome note from students. It was
followed by showing the Batch
presentation to speakers. After this,
it was the turn of the speakers to
take the stage. Mr. Inamdar started
off by clearly stating the difference
between Angel Investors, Seed fund,
Venture Capital and Private Equity.
He then went on to explain the
strength and weakness of three
types of capital markets viz. Public
Capital Market, Internal Capital Mar-
ket and Public Capital Market. It is
under the aegis of Private Capital
Market that Angel Investors, Venture
Capital and Private equity fall. He
also stated that Angel Investors, VC
and PE come into different stages of
business and are related to risk pro-
file of the business. Speaker also
touched upon different risk such as
Regulatory Risk, Operational Risk,
Market Risk etc. that come into pic-
ture while investing into PE. Next,
Mr. Azeri took students through the
internal process that a PE firm goes
while deciding to invest in a particu-
Private Equity/ Venture Capital: In Context of Funding Options
………………………………………………………

Spotlight
lar company. He stressed that Under-
standing Business and Due Diligence
are the two most important tasks in
the whole process. Mr. Zaveri also
pointed that personality and value
system of the owner of business also
plays a key role in making decision.
Lastly, both of them shared some of
their recent investment in startups
such as JustEat, Ampere to give stu-
dents a real hand feel of the whole
process.
This marked end of the session. It
was quite energetic and interactive
session with students asking ques-
tions and clearing their doubts
throughout the process. A note of
thanks was delivered by Dr. Santosh
Rangnekar, Head of Department,
DoMS IIT Roorkee and the speakers
were presented mementos for their
valuable time.
………………………………………………………

Department of Management Studies, IIT Roorkee
Roorkee - 247667, INDIA
Comment/Feedback Mail to : - domination.doms.iitr@gmail.com
Contacts: Mehul Lala (+91-9927081098 )
Nilaya Mitash Shankar (+91-9415580227)
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