Sunday, 11 August 2013

Business Management Dissertation | Toyota | Organization Expansion

Toyota’s Expansion into New Markets Using the Socialutions Management Model

The expansion of business operations into new markets is an important consideration for most multi national companies (MNCs). An important reason behind this is to increase the profitability of the business by exploiting the opportunities in the new markets. However, organization expansion to other markets is an important strategic business decision which could create a huge impact on the overall business operation. The management needs to consider the various aspects of the business including the available human and financial capital while implementing the decision of business expansion. The decision of the management to expand the organizational operations is a crucial business decision; therefore, it needs to be implemented after conducting necessary research about the new markets. Andersen (1993) believes that when the organization is going to establish its business operations in different countries then it needs to make huge investments in the systems, processes and infrastructure, therefore, it is essential to study the trends and available opportunities in the new markets. There are number of researchers which suggest that the use of management models help to implement the business expansion decision successfully. However, it is important for the organization to adopt an appropriate management model considering the nature of the business activities. The link between the management model and business activities of the firm is very important. Andersen (1993) suggested that it is more appropriate to adopt the management model which supports the business activities because the successful organization expansion to new markets can be ensured only when the management model is facilitating the business expansion process. Galbraith (2005) has also presented an important point of view and mentions that business expansion to new markets requires significant changes in the existing processes, therefore, those management models needs to be adopted which can facilitate and support change. An important point of discussion in this research is that how management model can facilitate the business expansion process.

Research Questions
  • Why are the reasons behind the organization expansion to new markets?
  • What is the role of an effective management model in order to successfully expand the business operations to the new markets?
Research Objectives
  • To identify the impact of organization expansion decision on the business profitability.
  • To evaluate that how management model can help to implement the business expansion plan successfully.
  • To assess the factors which motivates the management of the firm to explore the new markets and expand the organizational operations.

Sunday, 4 August 2013

Business Dissertation | Mergers Acquisitions | Steel Industry | TATA

Dissertation Does Merger and Acquisition Enhance Efficiency or Erode Company Wealth?

The focal point of this dissertation is to examine merger and acquisition strategy and to identify whether merger or acquisition enhances the efficiency of an organization, or erodes company wealth. The importance of mergers and acquisitions in the present business world has been significantly increased and the main objective of M&A is to develop shareholders wealth and provide better return to them through increased competitive advantage. The increased competitive advantage can be achieved through increased economies of scale; extension of acquiring firm’s assets and it will also add value to both firms. The term mergers and acquisitions hence refer to all transactions that cause alterations in the possession structure. The significant differentiating feature between mergers and acquisitions is the interdependence between the engaged firms. A merger defines the entire fusion of at least two economically and legally independent firms into a single firm. In this, event one the firms losses independence or becomes subordinate to the other firm. In acquisitions, the legal independence is retained, and the potentially acquired firm’s economic independence is completely lost or limited. In the modern corporate world, the mergers and acquisitions are bringing the companies closer and enable them to join hands to form the larger ones. The mergers and acquisitions are particularly important during the period of financial crisis and it is helpful for the companies to ensure their survival when business opportunities are low and there is less demand of the company’s products and services. The researcher has used both primary and secondary data collection methods in order to undertake this research. The primary data or firsthand information was collected with the help of questionnaire survey and interview method of research and in order to collect the secondary data, the researcher has considered academic journals, academic articles and books which have been written on the topic of merger and acquisition. The survey was conducted by the researcher with the employees of Tata Steel and the responses of the company’s employees could be very crucial because the employees usually have better awareness regarding the impact of business strategies on the company’s financial performance. The researcher has conducted an interview with the Business Development Director of Tata Steel in order to discuss the positive and negative effects of mergers and acquisitions. The research outcomes show that there are many benefits of mergers and acquisitions for the companies which are operating in the modern world. The organizations which are involved in M&A can take advantages of economies of scale and it could also results in reduction in the operational cost of the firm. The mergers and acquisitions can also be helpful for the companies to maximize the shareholder’s return and reduce the financial risks associated with the business. The findings of this research show that mergers and acquisitions could be very harmful for the organizations if they are not properly formed. Therefore, it is essential for the organizations to conduct the necessary research before forming mergers and acquisitions. The main outcomes of the study shows that that there are several factors which have motivated the topic leadership of Tata Steel to acquire Corus which includes strong market repute of Corus and huge business volume of the company.

Dissertation Objectives;

  • To gain in-depth understanding on the different corporate valuation techniques
  • To assess the rationale behind Tata steel acquisition of Corus
  • To establish the benefits and shortcomings associated with foreign M&A
  • Comprehend on the need for growth via cross-border M&A
  • To find out Government rules and regulation on cross-border merger & acquisitions