Study about Dimensions of Management Style Compatibility and Cross-Border Acquisition Outcome
Abstract:~ This paper examines how differences in management styles impact the performance of cross-border acquisitions. Two principal ﬁndings are reported. First, the study focuses on the individual dimensions of management style and highlights the particular inﬂuence that differences in risk orientation exert on acquisition outcome. This result, although unexpected, is argued to be consistent with prior literature that places risk orientation in a central role within organisational behaviour. Second, the relationship between management style compatibility and cross-border acquisition performance is found to be contingent upon the level of organisational interaction imposed by the post-acquisition process. Implications are drawn for both researchers and practitioners.
Introduction:~ Recent years have seen a marked increase in cross-border acquisition activity as ﬁrms pursue growth via geographical diversiﬁcation. Cross-border acquisitions have become the dominant means of internationalisation, accounting for approximately 60% of all foreign direct investment inﬂows (Hopkins, 1999). Yet, empirical studies draw attention to the mixed performance record of such acquisitions. While some researchers have reported that cross-border acquisitions create marginally positive abnormal returns for the shareholders of the acquiring ﬁrm (Seth et al., 2000), others have found negative shareholder wealth effects. keep reading…
CAFE Coffee Day (CCD) wants to become a global brand after its success in India. By 2012-13, CCD plans to be a big global chain both with organic growth and acquisitions. By the end of this year it will have 900 cafes and 2,500 by 2012-13. CCD already has its cafes in Austria and Pakistan and wants to set up cafes in Poland, Russia, Hungary, Dubai, Kuwait, China and Saudi Arabia. The company has received investment from Darby Templeton and Deutsche Bank to the tune of $100 million for expanding its network. In August 2008, CCD announced that leading international brand consultant Landor will help it to reinvigorate its brand and take it to the next level. Only the brand name and logo saying ‘A lot can happen over coffee’ will remain the same. CCD will now focus more on projecting a feeling of togetherness (friendship, romance or office meeting in an informal environment) and celebration which are critical core values. Accordingly the cafe ambience, the look and feel inside will be changed. Click here to read more…
A Case Studies about Family Business Groups in Thailand
Introduction: Although cross-border acquisitions are much more developed in the rest of the world (Pryor, 2001; Datta, 1991), such activities have recently started to become more commonplace in Southeast Asia (Mody and Negishi, 2000). Despite tough governmental regulations limiting the proliferation of cross-border acquisitions in most of the countries in the region (Dixon, 2004).
Activities are widely seen as being inevitable in Asia over the long run (Anadan et al, 1998; Guild, 2000) as the region moves towards the maturity of enterprises, economies, political and legal systems. In fact, there have been a number of cross-border acquisition transactions in Southeast Asia as a result of the easing of regulations from the start of market liberalisation in the 1980’s and at the time of the Asian financial crisis between 1997 and 2001. Keep reading…
Amazon has made some large purchases over the years, but they seem to favor making investments in companies, and marketing agreements with the companies they invest in. While some of their transactions were fairly public, a few were very private, and there aren’t many details on the web about those – for instance, it’s very difficult to find a date for the transaction involving Leep Technologies, which I’ve listed at the end of the 1999 acquisitions…click here to read ahead
American Tire Distributors (ATD), headquartered in Huntersville, N.C., is the largest replacement tire distributor in the United States. The company’s success is no accident. In fact, ATD is growing at the rate of 10-20 percent annually, partly through aggressive acquisitions, and partly via organic growth, including the expansion of its Tire Pros franchise operation.
ATD has also recently launched an Internet-based tire storefront. The site allows consumers to select tires directly from the ATD inventory; when they purchase tires, the sales are channeled through local ATD retail partners for processing and delivery. Keep reading…
Introduction: Since its founding in 1989, this major oil sands mining company, based in Calgary, Alberta, one of the world’s largest independent crude oil and natural gas producers, has delivered year-over-year growth in cash flow, net asset value and daily production per share. In many respects, the company’s IT infrastructure is similar to other enterprise environments with 450 servers in its three data centers support Oracle systems running under Linux Red Hat and Solaris.
Along with Microsoft Exchange and SQL under Microsoft Windows 2008. In addition, the company also supports over 1,400 industry-specific applications. The majority of these applications were added to the infrastructure through its strategic acquisitions—and most of them cannot be retired. Keep reading…
In 1975, TD Ameritrade started as a small brokerage firm in Omaha, Nebraska. It was a pioneer in helping the self-directed investor, being the very first brokerage firm to institute trading by touch-tone telephone. TD Ameritrade was also one of the first to offer Internet trading to individual investors – and its business took off.
Today, TD Ameritrade is the largest online equity broker in the world. “Five or six years ago, we did approximately five-to-six-thousand trades a day,” says Jerry Bartlett, CIO at TD Ameritrade. “Now, with our acquisitions, we average about 240,000. We achieved that without major upgrades in infrastructure, which speaks to the scalability of Caché.”
Case Study about Strategy Execution with Extraordinary Leadership at AT&T Driving Transformation & Unity
Introduction: After a series of joint ventures and acquisitions, AT&T had assembled a wide array of assets. The objective of the senior leadership team was no longer about acquisitions for scale and transformation; it was now about executing on the combined set of assets. AT&T needed to break down silos, change its culture to incorporate more innovative and collaborative thinking, and focus on the complexities and trade-offs in executing on its 3-year plan.
Team-based Approach Focused on Collaboration, Innovation & Extraordinary Leadership: Participants in each workshop collaborate in teams, which vie with each other for customers and talent in a dynamically competitive marketplace. Teams must execute on AT&T’s strategy while focusing on success factors in AT&T’s Extraordinary Leadership model, a strength-based approach to leadership development. As the first step, teams devise their 3-year plan for successful execution of AT&T’s business plan, including an articulation of the culture required for success.
Tesco plc is a British – based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share, and is the world’s third-largest retailer, behind Wal-Mart of the US and France’s Carrefour. The Tesco brand first appeared in 1924. The first Tesco store was opened in 1929 in London. Tesco floated on the London Stock Exchange in 1947. Its first self service store opened in 1947 and its first supermarket in 1956.
During the 1950s and the 1960s Tesco grew organically, but also through acquisitions until it owned more than 800 stores (most of this early growth was in and around the London area). In 1973 Jack Cohen resigned. The “pile it high sell it cheap” strategy of Cohen which had left the company “stagnating” and with a “bad image” was abandoned. In 1977 Tesco launched “Operation Checkout” which included price reductions and centralised buying for all stores. The result was a rise in market share of 4% in two months..
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“Young technology companies often jump at the opportunity to partner with major players like IBM or Microsoft, even if those companies aren’t the best fit for them. OpenView can help by providing the information they need to take a more holistic view of the marketplace and widen their scope of prospective targets. The result is a list of candidates that better aligns with their objectives.”— Tien Anh Nguyen, Senior Associate, OpenView Labs
stage technology companies, the process of exploring potential strategic partnerships, acquisitions, or mergers can be like choosing the right spouse. It’s not a decision to be taken lightly and there are numerous factors that influence whether a strategic partnership makes sense for both parties.
It is essential to be well informed and, at a minimum, to establish clears goals, identify the best potential partners, and prioritize them appropriately. Although this vetting process can be risky and expensive, failing to perform meaningful due diligence can mean significantly decreasing the chances that your company will find the right partner..
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