This website uses cookies to ensure you have the best experience. Learn more

Managing International Acquisitions Essay

1010 words - 4 pages

An acquisition is one of the fastest ways for globe business to enhance their reach across the world.Buying a local business can have its advantages, because setting up ones own operations in a new country may take time. It might also prove to be more expensive.However, international acquisitions are more complex than domestic acquisitions because the legal and business environments are different.Assuming that foreign acquisitions of business is permitted, fundamental issues such as identifying the evaluation criteria and evaluating the gain from an acquisition come into the spotlight.This simulation highlights the need to evaluate the right evaluation criteria and accurately analyze the various factors that might influence the evaluation of the gain from an acquisition.In this simulation, one of the world's largest banks called First South Pacific bank (FSPB) with over $400 billion in assets has an extensive network of operations in Americas and Europe.This bank intends to enter the Republic of Kitanesia.Kitanesia has an economy that is growing at a fast rate. FSPB senior management has decided to acquire one of the local banks of Kitanesia.FSPB's strategy is to target the consumer finance and corporate finance segments.Six local banks have been identified as potential targets for acquisition. But we need to identify which banks are the best strategic fits for FSPB and narrow the banks down to three. For this we need to analyze each bank on the following parameters:1. Competitive position of the bank in the market segment2. Assets and liabilities of each bank3. Sectoral exposure4. Network of branches/ATMs5. Product RangeNow we will evaluate the six banks based on the above different evaluation criteria, and rate each bank's strengths on the criteria and identify the top three that have the highest rating. The evaluation will be based on the executive summary on the major banks in the Kitanesian market that prepared by the Corporate Planning Department's research team.The strategic fit was evaluated on two parameters- market strength and financial strength.Three banks have ranked high on both parameters, Eastern Union Bank, Merchant's Savings Bank, and Great Progress Bank. Eastern Union Bank has the highest rating in terms of competitive position. The assets and liabilities position of the bank is also strong. The sectoral exposure of the bank is evenly spread out- a key requirement mentioned by the FSPB's CFO. FSPB's plan was to focus on consumer and corporate banking in Kitanesia. The bank's branches and ATM network is very extensive.In addition, the bank has a very strong product portfolio, a key driver of growth in a competitive market.Now the best three banks have been identified for further evaluation. We must now apply the discounted cash flow (DCF) technique to measure the potential gain from each acquisition, and identify the two...

Find Another Essay On Managing International Acquisitions

Managing Diversity Essay

1791 words - 7 pages managers in a multicultura1 workforce. HR Focus, 69(8). 10. Kelly, D.5 Jackson, B.W., LaFasto, F., & Schultz, H.G. (2000, Spring-Summer). Diversity, Human Resource Management, 31(2), 21-34. 11. Kosqlow, James J., Napier, Nancy K., Schweiger, David M. (1999, Winter). Managing organizational diversity: Observations from cross-border acquisitions. Human Resource Management, 32(4), 505-524. 12. Jenner, Lisa (19949 January). Diversity

International Law Essay

2387 words - 10 pages transactions has highly raised. 6Cross-border mergers and acquisitions, although presenting many of the same issues as domestic deals, are usually more complex and rife with surprises and other pitfalls. In recent years this complexity has grown along with the pace of globalization. The sheer range of concerns has expanded as the speed and volume of international deals have increased”. The complexities that emerge in the internal and external boundaries

australia survey studyng vietnammese

3011 words - 12 pages Strategic alliances and acquisitions 120 Localization of business operations 121 Key points 123 Key terms 124 Review and discussion questions 125 m Real Cases How environmental regulations can be used as trade barriers 125 Embraer vs. Bombardier 126 Endnotes Additional bibliography Chapter 5 International Culture Objectives oLthe chapter ' , • Active Learning Case Culture clash at Pharmacia and Upjohn Introduction What is culture? 127 128

merger and acquisition

5246 words - 21 pages . Boucher, W. I. (1980). The process of conglomerate merger. Washington, DC: Bureau of Competition, Federal Trade Commission. Bradley, L. (2003). Mergers and acquisitions as collaborative challenges. Advances in Interdisciplinary Studies of Work Teams, 9, 233-246. Bridges, W. (1991). Managing transitions. Reading, MA: Addison- Wesley. Carlton, J. R., & Lineberry, C. S. (2004). Achieving post-merger success: A stakeholder's guide to cultural

Impact of Acquisition on Employees Performance: A Case Study of RBS

1615 words - 6 pages -221. Retrieved January 16, 2010 from 10.1111/j.1748-8583.2008.00068.x. Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-Unit-Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis. Journal of Applied Psychology, 87 (2). 268-279. Retrieved January 08, 2010 from 10.1037//0021-9010.87.2.268 Hubbard, N., & Purcell, J. (2001). Managing employee expectations during acquisitions

Strategy Change

2554 words - 10 pages companies would be in existence. Moreover, through out this module we will look up Merger & Acquisitions as a business deal. The company that intends to acquire will be existing, where in the company that has been acquired will be non-existent after the merger.Over a decade, managing the " Human Factor" has gained importance with regards to success from a number of authors (Kimberly and Quinn, 1984; Kilmann et al.,1985; Pritchett, 1987

Impact of Acquisition on Employees Performance: A case Study of RBS

1426 words - 6 pages . K., Schmidt, F. L., & Hayes, T. L. (2002). Business-Unit-Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis. Journal of Applied Psychology, 87 (2). 268-279. Retrieved January 08, 2010 from 10.1037//0021-9010.87.2.268 Hubbard, N., & Purcell, J. (2001). Managing employee expectations during acquisitions. Human Resource Management Journal, 11(2), 17-33. Huselid, M. A (1995). The

Electrolux

1288 words - 5 pages ELECTROLUX: MERGER EXPERTSProblem SummaryElectrolux is a multinational company, which has reached its current size by an aggressive horizontal expansion strategy. Although experts in mergers, this case show the difficult process of uniting two with vastly different managing cultures and style. The core problem facing Electrolux, is how to integrate and motivate the group of 150 renegade middle managers who are hindering the success of their

The Treasure Tower

588 words - 2 pages find profitable businesses for sale, taking a listing, appraising the value, closing the sale, to managing the brokerage office. If you're planning to get into this lucrative professional field, you'll definitely learn and profit from this book. Written by Tom West, the founder of the International Business Brokers Association and the most knowledgable business broker in the country today.Business Appraisal Services: A very cost-effective way to

International Marketing Case :Hershey

2313 words - 9 pages Question 1: Compare and evaluate the international market entry strategies of Mars and Nestlé.Mars and Nestlé both use foreign direct investment (FDI) to enter markets, however, their approach to how the FDI is used differs between the two. Even though this is the most expensive form of market entry, in terms of finance, resources and management time, it allows for the most control (Appendix 1) but also carries the most

International Financial Management: BHP

1862 words - 8 pages Surname PAGE \* MERGEFORMAT 1 International Financial ManagementIntroductionThe management of a business organization is mandated with the responsibility of ensuring that the business organization adopts the necessary management practices in order to achieve increased performance. In the cause of business activities, business organizations come across different risks including financial risks. The financial risks in a business organization are

Similar Essays

Mergers And Acquisitions Essay

2032 words - 8 pages . The chances for success are more when the firms operate in related areas while the deal must be financed by cash or stock swaps rather than borrowing. Works Cited Brown, P. and Da Silva Rosa, R. (1997). “Takeovers: Who Wins?”, Journal of Australian Society of Security Analysts, vol. 4, pp. 2-5. Huang, C. and Kleiner, B. H. (2004). “New Developments Concerning Managing Mergers and Acquisitions”, Management Research News, vol. 27(4), pp. 54

Acquisition Robeco By Orix Essay

655 words - 3 pages international and relevant player. As mentioned before, the activities expanded in the following years but since 2003 the new CEO, Yoshihiko Miyauchi, has made quite a lot of acquisitions. The core leasing business was expanded to corporate real estate, life insurances, banking, and commercial real estate. The group was able to grow through organic growth and through acquisitions. The group now exists of the following business fields (2013

Acquisition Strategy Essay

2406 words - 10 pages York.Nguyen, H. & Kleiner, B. H. 2003, 'The effective management of mergers', Leadership & Organization Development Journal, vol. 24, no. 8, pp. 447-454.Rottig, D. 2007, 'Successfully Managing International Mergers and Acquisitions: A Descriptive Framework', International Business Research Teaching and Practice, vol. 1, no. 1, pp. 97-118.Packard, D. 1996, The HP Way: How Bill Hewlett and I Built Our Company, Collins New edition, pp. 110-125.

Mergers And Acquisions Essay

1900 words - 8 pages purchasing the majority of outstanding shares of a company in the open market. In the United States, business laws vary from state to state whereby some companies have limited protection against hostile takeovers. One form of protection against a hostile takeover is the shareholder rights plan, otherwise known as the poison pill.Mergers and acquisitions (M&As) have been and will continue to be major factors in both the U.S. domestic and international