Jet Airways takes over Air Sahara in an acquisition or takeover. This is a form of external growth that gives Jet Airways a 32% share of the Indian airline market. Benefits may include cost reductions from consolidating operations and offering connecting flights on expanded routes.
Daimler sells its stake in Chrysler after nine years of a failed merger between the German and American auto companies. Management and cultural issues, a lack of shared components between dissimilar car ranges, and failure to achieve expected economies of scale contributed to disappointing returns for shareholders.
In a global strategic partnership, two or more firms from
different countries work as a team. They pool their
resources or skills to provide better products or services.
Furthermore, they reach a broader audience through
collaboration. Firms engage in global strategic
partnerships because they believe the partnership will lead
to synergy, which means increased economic benefits.
In a global strategic partnership, two or more firms from
different countries work as a team. They pool their
resources or skills to provide better products or services.
Furthermore, they reach a broader audience through
collaboration. Firms engage in global strategic
partnerships because they believe the partnership will lead
to synergy, which means increased economic benefits.
Corporate governance is "the system by which companies are
directed and controlled". It involves regulatory and market
mechanisms, and the roles and relationships between a
company’s management, its board, its shareholders and other
stakeholders, and the goals for which the corporation is
governed. In contemporary business corporations, the main
external stakeholder groups are shareholders, debt holders,
trade creditors, suppliers, customers and communities affected
by the corporation's activities. Internal stakeholders are the
board of directors, executives, and other employees.
Issues in Corporate Governance: Company Directors – Their Duties According to the Company Law & Corporate Governance.
1. Directors are fiduciaries, i.e. empowered to oversee the management - to ensure that it is effective, honest, and dedicated to managing the company for the benefit of its shareholders and to enhance shareholder value.
2. Rules are largely common law and equitable rather than statutory.
3. As overseers, directors should serve as advisers, monitors, counselors, protagonists, and critics but not as bulldogs
The Presentation is Submitted to Kedge Business School . It analyses the position of Team Real Madrid from a case from HBS and recommends solutions for it.
Corporate governance is "the system by which companies are
directed and controlled". It involves regulatory and market
mechanisms, and the roles and relationships between a
company’s management, its board, its shareholders and other
stakeholders, and the goals for which the corporation is
governed. In contemporary business corporations, the main
external stakeholder groups are shareholders, debt holders,
trade creditors, suppliers, customers and communities affected
by the corporation's activities. Internal stakeholders are the
board of directors, executives, and other employees.
Issues in Corporate Governance: Company Directors – Their Duties According to the Company Law & Corporate Governance.
1. Directors are fiduciaries, i.e. empowered to oversee the management - to ensure that it is effective, honest, and dedicated to managing the company for the benefit of its shareholders and to enhance shareholder value.
2. Rules are largely common law and equitable rather than statutory.
3. As overseers, directors should serve as advisers, monitors, counselors, protagonists, and critics but not as bulldogs
The Presentation is Submitted to Kedge Business School . It analyses the position of Team Real Madrid from a case from HBS and recommends solutions for it.
A Study on Mergers and Acquisitions of Indian Banking Sectorijtsrd
The Indian banking sector has witnessed many Mergers and Acquisitions in the recent and past decades. With this context this study analyzed pre and post merger performance of ING Vysya Bank and Kotak Mahindra Bank using CAMEL rating approach system. The quality of assets is an important parameter to gauge the strength of the bank. The prime aphorism behind measuring the assets quality is to ascertain the component of non performing assets NPAs , total investments and total assets. This paper mainly aims to highlight the theoretical background of merger and acquisition and evaluation of assets quality in Indian banking sector and to examine the pre and post merger performance of net NPAs to net advances and gross NPAs to gross advances in ING Vysya and Kotak Mahindra bank. And also, to assess the pre and post merger performance of total investment to total assets and net NPAs to total assets of ING Vysya and Kotak Mahindra Bank. In this paper data has been collected from secondary sources and for the purposes of analysis or to measure adequacy of data applied one sample T Test, descriptive statistics. Finally, this study results net NPAs to net advances, gross NPAs to gross advances, net NPAs to total assets post merger performance was high and improved compared to the pre merger performance of Kotak Mahindra bank. Further the total investment to total assets the post merger performance was less or reduced after ING Vysya Bank merged with Kotak Mahindra Bank. Therefore, there is a significant difference between pre and post merger performance of net NPAs to net advances and total investment to total assets. K. Divya | Dr. P. Basaiah "A Study on Mergers & Acquisitions of Indian Banking Sector" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45147.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45147/a-study-on-mergers-and-acquisitions-of-indian-banking-sector/k-divya
certified merger and acquisitions analyst sample-materialVskills
The sample course material covers the followings concepts on.
Introduction to M & A
Understanding Key terms
Motivation behind M&A
Fundamental of M&A
Types of M&A Deals
Stages in M&A
Challenges of M&A deals
Check more details on the below link.
http://www.vskills.in/certification/accounting-banking-and-finance/Certified-Merger-and-Acquisition-Analyst
Similar to Internal/External Growth, Integration Worksheet (20)
1. UNIDAD EDUCATIVA BILINGUE NUEVO MUNDO
WORKSHEET
FOR ING 01 VER 15 04 11
Teacher: Alex Arancibia Name: ……………………………
Course: 2nd Bach Section:…………………………
Subject: Business & Management Date: …………………………….
Activity:
internal growth expansion of a business by means
of opening new branches, shops or factories (also
known as organic growth). An example of internal
growth would be a retailing business opening more
shops in towns and cities where it previously had
none.
external growth business expansion achieved by
means of merging with or taking over another
business, from either the same or a different industry.
External growth is often referred to as integration as it
involves bringing together two or more firms.
horizontal integration integration with firm in the same industry and
at same stage of production
forward vertical integration integration with a business in the same
industry but a customer of the existing business
backward vertical integration integration with a business in the
same industry but a supplier of the existing business
conglomerate integration merger with or takeover of a business in
a different industry
merger an agreement by shareholders and managers of two
businesses to bring both firms together under a common board of
directors with shareholders in both businesses owning shares in the
newly merged business
takeover when a company buys over 50% of the shares of another
company and becomes the controlling owner – often referred to as
‘acquisition’
Approved by: ________________________ Date: 13 jun 2012 # of copies: ____ Pages: 1/__
3. Read the case studies below and then answer the questions that follow.
Jet Airways takes over Air Sahara
India’s largest private airline, Jet Airways, says it has agreed to buy out its smaller rival, Air Sahara, for $140 million.
The takeover gives the airline a combined market share of 32%. Jet Airways acquires the aircraft, equipment and
landing and take-off rights at the airports Air Sahara had. ‘This deal is definitely going to be good news for Jet Airways
shareholders,’ Jet Airways founder and chairman, Naresh Goyal, said. Some analysts are predicting substantial
synergy (cost reductions and other benefits) from this takeover. Better deals from aircraft manufacturers are expected.
Streamlining the two head offices into one unit should reduce fixed costs. The interlinking of the different air routes
should allow more passengers to be offered connecting flights with the new enlarged airline. Before the takeover
could go ahead, it had to be approved by the Indian Ministry of Company Affairs. There was some concern that the
takeover could lead to a monopolistic position, as Jet Airways will now enjoy a dominant position on many domestic
air routes.
Source: www.bbc.co.uk
Daimler sells Chrysler after failed merger
After nine years of trying to make the merger of two large car makers work successfully, Mercedes Benz has at last
admitted defeat and sold its 80% stake in the US-based operator, Chrysler. The merger never increased returns to
shareholders and it failed in its original aim of creating a global motor company to compete effectively with General
Motors, Ford and Toyota. Management problems in controlling the merged businesses were huge. Distance
between Germany (Mercedes Benz) and the USA (Chrysler) made communication difficult. The car ranges of the two
companies had very little in common so there were few shared components, and economies of scale were less than
expected. Culture clashes between the two management approaches led to top-level director disputes over the
direction the merged business should take.
Source: www.timesonline.co.uk
1 Classify the type of integration used in both of these case studies. Explain your answer.
2 If Jet Airways were now to merge with an aircraft manufacturer:
a how would this merger be classified? Explain your answer.
b analyse two potential benefits to Jet Airways of this merger.
3 Assess the likely impact of the Jet Airways takeover of Air Sahara on any two stakeholder groups.
4 Using the DaimlerChrysler case study and any other researched examples, e.g. AOL and Time Warner, discuss
why many mergers and takeovers fail to give shareholders the benefits originally predicted.
Approved by: ________________________ Date: 13 jun 2012 # of copies: ____ Pages: 3/__