The Continuation of Gender Inequality - 822 Words

Gender inequality means differences in the status, power and prestige women and men have in groups, collectivities and societies. Gender inequality is caused when women have less power than men. While culturally and historically-bound, gender commonly is a function of power relations and the social organizations of inequality. Another point about gender is that class and ethnicity, gender inequality is not one homogeneous phenomenon, but a collection of disparate and interlinked problems. Inequality men and women can take many different forms Though there is essential equality between women and men, there is still foremost inequity in the rights of women. Throughout much of the world families and societies treat girls and boys unequally, with girls disproportionately facing privation, lack of opportunity, and lower levels of investment in their health, education, and work. Gender discrimination continues in adolescence and is often a constant feature of adulthood. â€Å"While women represent 50% of the world’s adult population, and one-third of the official labor force, they perform nearly two-thirds of all working hours, receive only one-tenth of the world income and own less than 1% of the world’s property. Female feticide is selective abortion, based on gender, and made a large occurrence in the 20th century; this is mostly due to the ability to determine sex through the use of ultrasound. In many cultures, such as India, girls are abandoned as a result of the dowry system;Show MoreRelatedThe Burden Of Benevolent Sexism Essay1006 Words   |  5 Pagesarticle I have decided to conduct my research on is titled The Burden of Benevolent Sexism: How it contributes to the maintenance of gender inequalities. The article is written and researched by Manuela Barreto and Naomi Ellemers from Leiden University in the Netherlands. The article examines benevolent sexism and how it contributes to the continuation of gender inequalities. It discusses the idea how we are less likely to challenge benevolent sexism due to the fact that we do not see it as a prejudiceRead MoreAnalysis Of Gish Jen s Who s Irish?893 Words   |  4 Pagesknowing about how gender inequality in china has changed over the last several decades since the story was written, and wanting to narrow the topic I focused on inequality in education in China. Not many women were fierce and independent women who could make a life of their own, which then brought up the question, has gender inequality changed in Chinese culture? Or to narrow it down some more how has gender inequality in education changed in Chinese culture? Though slowly gender inequality has been changingRead MoreOthello - shakespeare and saxs film adaptation923 Words   |  4 PagesShakespeare’s Othello and Geoffrey Sax’s film Othello. This reflection is established through the two ideas of racism and the inequality between genders. The context of a text plays an essential role as it is the way in which the composers convey their message and this is done effectively as both composers are conveying an important message about racism and gender inequality. Racism is a theme that is prominently evident throughout Shakespeares Othello. Through this theme, there are several perceptionsRead MoreWhy Race and Gender Inequality Still Exist1101 Words   |  4 Pagescenturies ago, but inequalities between gender and race continue to exist. To analyze why gender and racial inequalities prevail, human capital theory and functionalism take into account cultural, historical, and economic factors. In my opinion, the human capital theory presents a more persuasive reason. Although race and gender inequalities in the United States have diminished in the past few centuries, many aspects of these inequalities still persist today. Race and gender inequalities are covert, andRead MoreAchieving Gender Equality : Education1520 Words   |  7 PagesAchieving Gender Equality: Education in China In Gish Jen’s short story Who s Irish?, the main character is a determined Chinese grandmother who moved to America with her husband when she was a young woman, and now, in her old age, she is nearing her limit when she cannot handle her granddaughter s behavior and how she is being raised. The story was written in 1956 and while reading it a question of interest grew in knowing about gender inequality in China and if it has changed in the last severalRead MoreAttire Analysis. In Terms Of Attire, From A Visual Standpoint1354 Words   |  6 Pagesâ€Å"Colgate has a reputation for being a continuation of preppy high school, and not much has changed even with increasing protests and calls for diversity.† Gender Analysis In regards to the second theme of gender, within the dining hall the majority of tables generally exhibited single-sex groupings. This assertion sticks true to the commonly accepted norm within anthropology and caused no arousal of surprise (Allan, Graham, and Rebecca G. Adams 2006, 126). This gender exclusion by table also offers anRead MoreFeminism1121 Words   |  5 Pagesdefined as a recognition and critique of male supremacy combined with efforts to change it. Feminism The goals of feminism are: To demonstrate the importance of women To reveal that historically women have been subordinate to men To bring about gender equity. Feminism Simply put: Feminists fight for the equality of women and argue that women should share equally in society’s opportunities and scare resources. Types Individualist feminism Relational Feminism (Karen Offen) History As old asRead MoreGreek Life And Its Impacts On Women1108 Words   |  5 Pagesnumber of reasons, some of which include dangerous hazing habits and unsavory social scenes. While there certainly are undeniable benefits and negatives within these systems, the biggest effect they have is on gender. â€Å"Greek life† in college is unhealthy due to its impact on post-college gender expectations by promoting party culture, encouraging misogyny through ingrained tradition, and indoctrinating women into subservience at an impressionable age. First and foremost, parties plays a huge roleRead MoreEssay about The Cycle of Socialization1111 Words   |  5 Pagessocialization. The cycle of socialization can open ones eyes to why our society has specific views of people from other cultures, races, and genders. The cycle of socialization can help us understand the current situation in our society since it is the reason for the existence and continuation of racism, prejudices, stereotypes, and oppression amongst different people. The cycle of socialization has a beginning, and a middle, but it Read MoreGender Differences And Gender Inequality Essay2348 Words   |  10 Pagescom/dictionary/institution). Taking this into account, that means that a gendered institution is one in which gender differences and gender inequality have become an established organization; or a custom, practice, or law that has been accepted and used by many people. Kimmel states that they reflect existing gender differences and gender inequalities, construct gender differences, and reproduce gender inequality by making those differences appear not to be socially produced but naturally produced (pg 318). Thus

History Atomic Bomb Essay - 3454 Words

In early August 1945 atomic bombs were dropped on the Japanese cities of Hiroshima and Nagasaki. These two bombs quickly yielded the surrender of Japan and the end of American involvement in World War II. By 1946 the two bombs caused the death of perhaps as many as 240,000 Japanese citizens1. The popular, or traditional, view that dominated the 1950s and 60s – put forth by President Harry Truman and Secretary of War Henry Stimson – was that the dropping of the bomb was a diplomatic maneuver aimed at intimating and gaining the upper hand in relations with Russia. Today, fifty-four years after the two bombings, with the advantage of historical hindsight and the advantage of new evidence, a third view, free of obscuring bias and passion,†¦show more content†¦Run by General Leslie R. Groves at locations such as Los Alamos, New Mexico, this project then called by its code name only to a handful of scientists and politicians. Truman learned of the project, then calle d by its code name S-1 (and later as the Manhattan Project), from Secretary of War Stimson on April 25 19454, only after becoming President. Concurrent with the Manhattan project, both Japan and America were making preparations for a final all-encompassing conflict, which both sides expected would involve an American invasion of mainland Japan. The Americans expanded conventional bombing and tightened their increasingly successful naval blockade5. The Japanese began and stockpiling of aircraft, amassed a giant conscripted military force, and commenced the creation of a civilian army—who swore total allegiance to the emperor. This awe-inspiring army included â€Å"so-called ‘Sherman Carpets,’ children with dynamite strapped to their bodies and trained to throw themselves under American tanks.† 6 In the end, these final preparations were not employed. On August 26th, 194 the American B-29 bomb, named Enola Gay by the Pilot Paul W. Tibbets, dropped the â€Å"little boy† uranium atomic bomb on the city of Hiroshima. Three days later a second bomb, made of plutonium and nicknamedShow MoreRelatedHistory Atomic Bomb Essay3526 Words   |  15 PagesIn early August 1945 atomic bombs were dropped on the Japanese cities of Hiroshima and Nagasaki. These two bombs quickly yielded the surrender of Japan and the end of American involvement in World War II. By 1946 the two bombs caused the death of perhaps as many as 240,000 Japanese citizens1. The popular, or traditional, view that dominated the 1950s and 60s Ââ€" put forth by President Harry Truman and Secretary of War Henry Stimson Ââ€" was that the dropping of the bomb was a diplomatic maneuver aimedRead MoreThe Dropping Of The Atomic Bomb Essay1734 Words   |  7 PagesPeter Lim History 435 4/30/2015 The dropping of the atomic bomb was used to save American lives; the most common excuse as to why President Harry Truman decided to drop the atomic bomb on Japan. In Major Problems in the History of World War II it has been discussed in the chapter The Atomic Bomb and the End of World War II that former President Truman recalled how he learned about the atomic bomb project as well as the public opinion on the Atomic Bomb. I believe that the solution that TrumanRead Morecritical evaluation Essay852 Words   |  4 PagesCritical Evaluation Essay: A Petition to the President of the United States The atomic bombs that were dropped on Japan in 1945 were not seen as a logical reaction to the war by everyone. Leo Szilard was a Hungarian physicist that was the first to conceive of the mechanics of the atomic bomb, and how it worked. He was fighting the use of these bombs on Japan, and trying to urge the President to reconsider the idea. Although he lost the argument over whether to use the bombs, his argument was validRead MoreWhy the Atomic Bomb Was the Wrong Choice Essay example1340 Words   |  6 PagesWorld War II played host to some of the most gruesome and largest mass killings in history. From the start of the war in 1939 until the end of the war in 1945 there were three mass killings, by three big countries on those who they thought were lesser peoples. The rape of Nanking, which was carried out by the Japanese, resulted in the deaths of 150,000 to 200,000 Chinese civilians and POW. A more well-known event was of the Germans and the Holocaust. Hitler and the Nazi regime persecuted and killedRead More The Atomic Bomb Essay1549 Words   |  7 Pages it will be discussed why the Atomic Bomb is the biggest method of destruction known to man. The paper will be discussing the results of the Atomic Bombs, along with the effects years after the initial explosion. People always wonder how many people actually died in the two Atomic Bombs which were dropped in Japan. This question will be answered, along with the method that citizens were actually killed by the bomb. Besides the initial blast winds that an Atomic Bomb gives off, people may be killedRead MoreWas the bombing of Hiroshima and Nagasaki the only way to put an end to World War 2?716 Words   |  3 Pagesjustifiable, there are many that would agree the USA’s actions were justifiable in dropping the â€Å"atom bomb† in the case where the relentlessness of the Japanese was too much for the USA, the USA were running out of supplies being that they were running out of ammunition, medical supplies for first aid, funds and most importantly for a war troops. Either way it was not right to just drop the â€Å"atom bomb† on a country in order to get them to get them (Japanese) to withdraw from the war (WWII). The sameRead MorePresident Truman and the First Atomic Bomb Essay1193 Words   |  5 PagesAtomic Bomb Essay In 1945, World War Two was coming to an end. Following Adolf Hitler’s suicide, and Nazi Germany’s unconditional surrender on May 7, 1945, the war in Europe was finally over. The allies began began postwar planning for future, as well as establishment of post-war order and peace treaties issues. America’s war wasn’t done yet as they were still fighting Japan, eventually pushing them back to their main islandRead MoreAtomic Bombs On Hiroshima And Nagasaki1074 Words   |  5 Pageswhich WWII could have ended. Rather than taking the risk of dropping atomic bombs on Japan, many people believe that one of the alternative options would have been much more sensible. The variety of possible options the U.S. could have taken to finish the war have been analyzed for years. Though Truman’s decision to drop the atomic bombs over Hiroshima and Nagasaki is one of the most controversial and debated topics in history, this researcher believes that he made the right choice. This researcher’sRead MoreThe Atomic Bombs On Hiroshima And Nagasaki982 Words   |  4 PagesHiroshima, it only makes me wonder what was going through the mind of President Harry Truman when he gave the â€Å"green light† to drop the atomic bomb on Hiroshima and Nagasaki. It has been more than 70 years since that happened and the conclusion of World War II, and yet the legacy remains in our modern day history books and class lectures. But was deploying the atomic bombs on Japan really necessary? What was Truman thinking? And did the end really justify the means? Truly, upon reading Takaki’s HiroshimaRead MoreThe Atomic Bomb1470 Words   |  6 Pagesover 70 years since the atomic bombings of Hiroshima and Nagasaki, they remain controversial as conscientious struggle with the ethics of using such weaponry in the course of armed conflict. President Truman had a number of options apart from the atomic bomb. He could have left the invasion of Japan to the Russians, whom wanted revenge for the Russo-Japanese War of 1904-05, as well as the more recent conflict in Manchuria (Goldman, 2012). The dropping of the atomic bombs must have shocked many who

Wrestling and the My Influential Coach Essay Example For Students

Wrestling and the My Influential Coach Essay In my days of high school, I was a typical obnoxious teenager, always seeking a thrill and getting myself in trouble. I would hang out and go to parties rather than taking a few hours out of my unproductive days to complete my homework. It would have been so much easier spending a few hours on something important rather than spending countless hours on my social life which I did not benefit from. My perspective on life was surreal in the sense that I never worried about taking on my own responsibilities. After all, my responsibilities took care of themselves, although not to the high standard they should have been. I did not take the time to be a productive student, mostly because I felt like I was doing what every other disobedient teenager on my team was doing. In fact, Coach Smart had never dealt with so many immature adolescent boys. It must have been a struggle for him to deal with such a facetious class. I could tell by the seriousness of his tone when he first lectured and used his brilliant quotation that changed the way I thought about school and wrestling. I would have to say that Coach Smart came in at the right moment in my life. If it had been at any other time I may not have understood his quotation to the fullest. One afternoon at wrestling practice Coach Smart walked into the gym to find a circus of untamed acrobats instead of what should have been a disciplined team. It was a sight of a complete utter chaos. His sudden presence of power and authority in the room was unsuspected. Taken by surprise, the room fell silent as the wrestlers stood at attention before Coach Smart. He then began talking about how as a team we need to change the way we apply ourselves during conditioning if we plan to achieve victory. I remember wanting to win our matches, however I recall rarely putting enough effort into practices to acquire a win. Coach Smart drove home his point through sharing his quotation, The key to success in any endeavor is self discipline, every day, in every way, on any play.   The wrestlers interpreted his quotation in many ways, but I believe I understood it in the most effective way. Immediately I realized that in every endeavor a particular goal must be met. To reach that goal you have to put time and effort. Another way to achieve a goal, such as a class assignment, is to complete the required work in order to gain the desired grade. There are a lot of ways to gain self discipline in order to achieve lofty goals. For instance, writing a English paper in two weeks of time, many would say no thank you!   However, if you spend time and effort towards writing a paper, it will be easy for the most part. In order to accomplish my endeavors I feel like I have to discipline myself by eliminating all of the distractions in life, whatever they may be. For example, my daily distractions are television, the computer, a video game console, and sometimes even my girlfriend. While these are my main distractions in my life I must admit I love them because they are my means of escape. Although I enjoy the time away from my rigorous schedule, I need to prioritize my time, and this is where self discipline falls into place. It is extremely important to discipline myself in order to avoid all the distractions and apply myself more productively by asserting self discipline. Self discipline empowers me to accomplish the tasks that most people say no thank you!   to. Coach Smarts quotation was meant for wrestlers to apply towards the sport when he stated every day, in every way, on any play. .u70fc1d69a9e491b9905d0d26db19baa9 , .u70fc1d69a9e491b9905d0d26db19baa9 .postImageUrl , .u70fc1d69a9e491b9905d0d26db19baa9 .centered-text-area { min-height: 80px; position: relative; } .u70fc1d69a9e491b9905d0d26db19baa9 , .u70fc1d69a9e491b9905d0d26db19baa9:hover , .u70fc1d69a9e491b9905d0d26db19baa9:visited , .u70fc1d69a9e491b9905d0d26db19baa9:active { border:0!important; } .u70fc1d69a9e491b9905d0d26db19baa9 .clearfix:after { content: ""; display: table; clear: both; } .u70fc1d69a9e491b9905d0d26db19baa9 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u70fc1d69a9e491b9905d0d26db19baa9:active , .u70fc1d69a9e491b9905d0d26db19baa9:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u70fc1d69a9e491b9905d0d26db19baa9 .centered-text-area { width: 100%; position: relative ; } .u70fc1d69a9e491b9905d0d26db19baa9 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u70fc1d69a9e491b9905d0d26db19baa9 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u70fc1d69a9e491b9905d0d26db19baa9 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u70fc1d69a9e491b9905d0d26db19baa9:hover .ctaButton { background-color: #34495E!important; } .u70fc1d69a9e491b9905d0d26db19baa9 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u70fc1d69a9e491b9905d0d26db19baa9 .u70fc1d69a9e491b9905d0d26db19baa9-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u70fc1d69a9e491b9905d0d26db19baa9:after { content: ""; display: block; clear: both; } READ: Theorectical Bases For Counseling EssayAlthough I believe that the message is applicable to anything a person sets out to accomplish in life, I apply this message, most importantly, towards my educational outlook. Coach Smarts significance towards my life has been astonishing. I can see change, not only in myself, but in the goals that I have achieved. I would say that I am a lot smarter than I was before I acknowledged the quotation. The way I take action towards any of my endeavors that I partake is a result of figuring myself out to becoming committed by making progress in my educational outlook. I feel more confident in my efforts towards accomplishing my goals. I now analyze every goal by figuring out the requirements needed and remove all of the distractions that would interfere, out of my life. I hate the feeling that I stress about my goal while I am being distracted or procrastinating my endeavors. Currently, I now consider all of my goals easier than ever imagined. One key factor in any endeavor is truly self discipline. It has become a constant instinct to discipline myself and put the priorities in front, thereby setting aside all of the unproductive things I do. Overall, I am thankful for having Coach Smart played a significant and inspirational role in my student life. I fully realize the guidelines he has set me to become not only a better athlete, but a better person and student as well. I am now a college student that has great confidence meeting challenges to help me achieve my goal. I cannot imagine myself without Coach Proctor for taking his time and effort in trying to help me find the dedicated self that I am today. The most effective and meaningful way he influenced me was by sharing his brilliant quotation The key to success in any endeavor is self discipline.

New Marketing Strategy for Pepsi Co. free essay sample

This is a 1 page paper that explains why the new Pepsi Co strategy of making brand apparel is going to be effective. In a recent Business Week article on September 20, 2001, Pepsi Co Inc. created a line of young mens and womens apparel, footwear, and accessories that would serve not as a crude brand billboard but rather reflect the lifestyles of Pepsi and Mountain Dew drinkers. Why would Pepsi invest in such a venture even though the Pepsi icon might not be visible on these products? Do you think this marketing strategy is a trend or an effective long-term strategy? PepsiCo Inc. is best known for its soft drink Pepsi and Mountain dew and yet, over the years it has also created logo items, such as T-shirts, hats and duffel bags with the Pepsi globe design. These are part of its marketing strategy to promote the drinks in the minds of the people making the drink a part of the life of their life. We will write a custom essay sample on New Marketing Strategy for Pepsi Co. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page But that sort of marketing has its limitations. These items can be taken to the beach but they are not a brand. In todays lifestyle a brand name is what is needed to succeed. It is the brand name that grabs the attention of the consumer and retains their loyalty as price, quality etc. become associated with the name accordingly. So the logo accessories that were promoted by Pepsi may have been used but they did not create an awareness of Pepsi in any market other than that of soft drinks.

Rules for Writing out Numbers

Rules for Writing out Numbers Why do so many people find it difficult to remember the rules for using numbers in formal writing? Probably because the rules seem a little fuzzy sometimes. So what can you do? Its no mystery: as with anything, read and study the rules several times, and it will all seem natural, eventually. Writing Numbers One through Ten Spell out numbers one through ten, as in this example: My little brother ate four apples before dinner and became ill.Why do parents always check to see if babies have ten toes? Writing Numbers Above Ten Spell out numbers above ten, unless writing the number would involve using more than two words. For example: I have sixty-three dead bugs in my collection.My cousin has 207 bugs in his.This site has given me a thousand helpful hints for my homework.My grandmother is seventy-two today.My little sister had about 4,763 measles on her face. Always Spell Out Numbers that Begin Sentences It would look odd to begin a sentence with a numeral. Four hundred fifty people attended the birthday party. However, you should try to avoid using long, clunky numbers at the beginning of a sentence. Instead of writing that four hundred and fifty people attended a party, you could re-write: There were 450 people at the party. Dates, Phone Numbers, and Time Use numbers for dates: My birthday is on March 16.He was born on Valentines Day, 1975. And use numbers for phone numbers: The phone number for the school is 800-555-6262The international code for England is 44. And use numbers for telling time if using a.m. or p.m.: The alarm will sound at 7 p.m.I make my bed at 7 a.m. each morning. But spell out times when using oclock or when the a.m. or p.m. are omitted: The alarm will sound at seven oclock.I make my bed at seven each morning.

Least vs. Lest

Least vs. Lest Least vs. Lest Least vs. Lest By Maeve Maddox Least, pronounced [LEEST], is the superlative of the adjective little: little, littler, least. It can also function as noun and adverb: She passed the exam without the least preparation. (adjective) Truly, I say to you, as you did it to one of the least of these my brothers, you did it to me. (noun) The person who can least spare it is often the most willing to give others a piece of his mind. (adverb) Lest, pronounced [LEST], is a conjunction that introduces a clause that expresses something that should be guarded against. Although still used by modern writers and speakers, it has a distinctly literary flavor: Give not that which is holy unto the dogs, neither cast ye your pearls before swine, lest they trample them under their feet, and turn again and rend you. Matthew 7:6 Beware lest you lose the substance by grasping at the shadow. (Moral to Aesop’s tale of â€Å"The Dog and the Shadow.†) The formulaic phrase lest we forget is especially popular at the time of year when a nation honors its military forces and commemorates the slain. Used this way, it means â€Å"So we don’t forget,† or â€Å"Let us not forget.† For example, this past Memorial Day the phrase appeared on hundreds of websites above photo collections, memoirs, and poems dedicated to the memory of enlisted men and women who gave the supreme sacrifice. â€Å"Lest we forget† is also used as a cautionary expression, warning of disappointment or danger to ensue if something is forgotten: Lest we forget the pastBuying broken or unfinished games. Lest We Forget. â€Å"Remembering Abbott’s Past† Lest we forget, child abuse has many forms. Unfortunately, a great many English speakers are confused about the difference between least and lestat least when it comes to the phrase â€Å"Lest we forget.† A Web search brings up hundreds, perhaps thousands of sites headed by the phrase â€Å"Least We Forget.† Here are a few examples that go beyond the three words: Least we forget in the Twenty First Century Least we forget the Holocaust. Least we forget Vietnam, Ethiopia, you insert any war you like. Least we forget what China actually is I even found a song title spelled â€Å"Least We Forget.† In conclusion, lest you forget, lest rhymes with west. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:Addressing A Letter to Two PeopleDisappointed + Preposition10 Functions of the Comma

Financial management Essay Example | Topics and Well Written Essays - 1500 words

Financial management - Essay Example This is different from For-Profit organizations that source their funds from shareholders who are the real owners of these organizations. Organizational structure of NGO’s and For-Profit are a bit similar in the sense that both set of organizations are managed by boards of directors. Financial management entails the processes of budgeting, Taxation and corporate governance. NGO’s typically have financial budgets prepared over the period of the activities they are undertaking. On the other hand, For-Profit organizations have their financial budgets prepared for a period of one financial year. Governments levy taxes on all organizations for the purpose of implementing public project or service provision but with the exemption of NGO’s. According to Brigham (2010, 65), the main difference between NGO’s and For-Profit organizations is the objectives and goals of these organizations. NGO’s are set up to provide charitable goods or services to people with out need of making a profit. This major differentiating factor is the reason behind the differences in financial management practices between these organizations. Corporate governance is important in implementing integrity and management of organizational strategies. NGO’s are not particular in enforcing prudent corporate governance practices compared to For-Profit organizations. ... NGO’s are organizations which are not set out to make profits but instead they are meant to provide a service. This is opposed to profitable organizations which are meant to make profits. Organizational Structure The organizational structure of NGO’s is different from that of a profitable organization in that NGO’s are mandated to offer services compared to profit organizations which are meant to make profits. NGO’s are registered or mandated either by governments or special bodies to undertake projects or service delivery to different people. The major difference between NGO’s and profit organizations stems in the ownership structure of the two bodies. NGO’s are owned or operated by a board of directors or a steering committee in some cases; this board of directors is responsible for drawing up the financial strategies for the organization. The board of directors of an NGO are responsible for sourcing funds for the organization through diffe rent ways (Brigham 94). In some instances, some NGO’s have adopted the structure of a private company and used this structure to manage their financial operations. Most NGO’s source their funds from governments, churches and donations this is because these organizations act as governments and they only use their funds for capacity building. This is in contrast to profitable companies whereby ownership of these organizations belongs to some individuals. Profitable companies are owned by people known as shareholders; shareholders are responsible for funding the organization to undertake the goals and objectives of these organizations. Public owned organizations are profit organizations which comprise of a many owners in a company

Strategic Decision Making in a Global Business Setting Case Study

Strategic Decision Making in a Global Business Setting - Case Study Example 2. A cultural audit is needed to evaluate these two firms. The audit would evaluate the demographics of the population, education, and experience of the staff. The demographic variables to be judged are age, gender, language and ethnic background. The AMI operation seems to have a deficiency in terms of balance of gender. Only 15% of the worker populations are women. Such an imbalance in gender composition is not healthy and could be used as evidence against the firm if the company ever got into litigation with female workers. AMI also suffer from glass ceiling symptoms since not enough women are part of the managerial staff. The cultural audit performed at UCTC demonstrated that the firm has great diversity within its staff. A good initiative for this firm would be to create seminars and trainings to discuss the importance of diversity and how it can be used as a competitive advantage in the business industry. 3. Due to the differences in culture between the two firms my consulting firm could serve as a valuable intermediary that can create a plan to achieve synergy among the two business entities in the long run. The organizational culture affects the ability of the change agent to incorporate changes (Recklies, 2011). My first action would be to meet with the managerial staff of each company independently.

SCM PepsiCo Essay Example for Free

SCM PepsiCo Essay The Beverage Industry is a mature sector and includes companies that market nonalcoholic and alcoholic items. Since growth opportunities are few compared to existing business, many members of the industry endeavor to diversify their offerings to better compete and gain share. Too, they may pursue lucrative distribution arrangements and/or acquisitions to expand their operations, product portfolios, and geographic reach. Most equities in this group are suitable for conservative investors. The largest companies offer reliable dividends, with regular increases, and above-average Stock Price Stability. There are a few selections for those that are more venturesome. Such issues might serve a particular market niche, for example, energy drinks or developing overseas markets. Generally, the group turns in a steady performance throughout the business cycle, but it will generally suffer in the most stressful of economic times PepsiCo is one of the largest food and beverage companies in the world. Its products include a variety of salty, sweet, and grain-based snacks as well as Csds and non-Csds. the company is responsible for the manufacturing, marketing, and sales of these goods. It has 18 brands in its portfolio and is headquartered in New York. PepsiCo has two divisions: bottle soft drinks and juice segment. In India the consumption proportion of both divisions are good as compare to the major competitor. PepsiCo have invested around 12000 crore in India and has the most of the market share in India in beverages industry. Mr. Anil R the Senior Manager of the organized trade handles the major area of Bangalore. His roles are to see the proper working in organized trade and to bring new business. OT has major area like restaurants, pubs, Cineplex entertainment, tourist area, and other major area of people’s needs. He was frustrated by the sales failure which done by PSR. Mr. Anil R, has noticed in the surprised visit of 20 outlets across the Bangalore is that the regulatory of the pre sales executive is not regular and they are not taking up the order from the customers time to time, not listing up the complaint of the customer which they are facing and above that they are not meeting up the target which they are proposed. Also what Anil found that the VISI cooler is also misused by the costumer, they put different stuffs in the costumer with other company beverages bottle. Anil found that these small looking issues have a big failure in future because it not only looses the costumer but also the revenue will decrease and for this he got to answer his highest authority. Taking the entire major problem on account and to the consideration Anil has started the training process and much needed to his PSR Mr. Prajapati and to Mr. Shail Sharma. The 7 days training consists of communication skills, behavioral skills about the product with clear detail and other major attributes regarding customer satisfaction. Anil only emphases on the customer satisfaction, he not only instructed his PSR about the regulatory visits to take the order but also he instructed about the PepsiCo commitment towards the costumer and about VISI cooler he also instructed. For all these he has given stick instruction for his PSR to follow up the good work if got failure may lose the job. Upon assuming the job, Anil does a Market research and compared the report on customer reaction. He discovered that Prajapati was well above the average for its costumer. In other words, Prajapati maintain the good relations with its costumer. On the other Shail stills lagging behind the performance. Anil’s conclusion is that Prajapati is performing well above the average level but stills it’s not the up to the company’s point of view. And Shail still face the failure. He fails to appreciate the importance of relationship. At his first sales meeting as senior manager Anil went over the financial data that demonstrated how much more expensive is to acquire new costumers than its current ones but we are losing even our existing once. Prajapati has 2 years of work experience in PepsiCo whereas Shail has 4 years of experience in the PepsiCo as PSR. Questions: 1 What course of action should Anil follow regarding PSR working Condition? 2 Should he hire new PSR? 3 Do you think Anil doing a good work to give training program?

Migration Similarities of Island People Essay -- Immigration Immigrant

Migration Similarities of Island People Works Cited Not Included I will compare the migration experiences of the Tongan island people as illustrated in Voyages: From Tongan Villages to American Suburbs with the migrants of the Dominican Republic that Peggy Levitt discussed in The Transnational Villagers. I will further describe how many of their encounters mirrored the life of "Dan," an island native that shared his transnational knowledge by describing the social remittances, international connections and migration he experienced. Dan is a native of Ireland. He is a legal alien living in Arizona. He grew up surrounded by the influences of a transnational family. Migration was viewed as an acceptable and natural step in a motivated Irish person’s rite of passage. This is also the clear message of Small (1997), she noted that migration became an essential part of what it meant to be Tongan and the excitement of living overseas might be the best way to fulfill a Tongan life. (p. 43) Dan's migration influence seemed to stem from his grandfather, who worked in a post-office when letter writing was the major form of communication. He would narrate and respond to letters from overseas, as requested by his neighbors. Many of these letters were from the Irish-Americans that had emigrated in large numbers to the United States over the decades. In 1911 for instance, the number of Irish-born persons living abroad was equivalent to 50% of the population that lived in Ireland at the time (Courtney, 2000). The international correspondence Dan’s grandfather processed, he often shared with his family. This may have sparked the desire in his daughters, one of which was Dan's mother to travel to the United States many years later. ... ...ain, Canada, Australia and the United States, during this time the population in the Republic of Ireland was only 3.53 million (Courtney, 2000). In1995, more than one-quarter of the entire population of Tonga, both Tongan born and American born were living in the U.S. (Small, 1997). Levitt (2001) pointed out that eight and a half percent of the Dominican Republic’s population lived in the United States, but they do not necessarily intend to stay in the U.S. (p. 22) Americans tend to have a belief that their country is superior, consequently we believe that everyone, if they could, would be a U.S. citizen (Small, 1997). As Dan proved, this is not the case, although he felt that it was his destiny to come to the United States, after 13 years of residing in America, he has no doubt that his identity remains that of an Irish man in America and not an Irish-American.

Habitus vs Hegemony Essay

Although there are many similarities and connections among Bourdieu’s notion of habitus and Williams’ notions of hegemony and structure of feeling, there are also many differences. Through a brief discussion of the three concepts, the reasons why hegemony and structure of feeling would seem to challenge habitus, rather than support it, will become apparent. Bourieu’s notion of habitus is one of a way of organizing everything around a set of assumptions about a place. The social practices, and assumptions about those practices, make up habitus. It is a social construction that is the reason for certain social norms or behaviors, though it feels more innate than that; people do not have to talk about the practices because everyone does them out of social habit. Habitus is the â€Å"flow† of society that is taken for granted. There are many similarities between Bourdieu’s notion of habitus and Williams’ notion of hegemony. Williams’ notion of Hegemony is a critical concept broader than traditional ideology and takes a look at the problems with ideology. Under the idea of hegemony, is the idea that there is never complete or total domination; there is always a counter-hegemony, that which resists is. Hegemony includes social practices and what we deem â€Å"common sense,† which is similar to what habitus encompasses with society’s â€Å"flow. † Habitius also has a sense of control, just as hegemony does, but habitus has a more structural sense. It takes a closer look at the relationships between what people think, closer to the way ideology does, not just the social practices. Another of Williams’ notions is structure of feeling, but whereas hegemony would seem to support Bourdieu’s idea of habitus, structure of feeling seems to challenge it. Structure of feeling is the emergent affective frame of social practices and, unlike hegemony and habitus, is not as taken-for-granted as common sense. Structure of feeling is a notion that takes a broader look at hegemony (and habitus) and brings the sociological analysis to the next level; it is more of a notion of the relationships that arise because of the common-sense social practices rather than a notion of the theory of practice. Structure of feeling takes a look at they way that there are general cultural ideas or moods, or ways of expressing oneself, that have become dominant in any given culture. Williams’ says that everyone has different experiences that they presume to be individual until they realize, through their relationships with other people, that that is not the case. This is where structure of feeling would seem to challenge habitus. Although they are both concerned with social patterns, practices and norms, habitus (and hegemony) discusses the patterns as something that goes unnoticed by the general population. Structure of feeling says that people do in fact realize these patterns through their interactions with one another. Another main difference between the three concepts is Williams’ idea of counter-hegemony. Counter-hegemony is essentially resistance to the idea of hegemonic power; there is a general opposition to the function of hegemonic power in political and social practice. Hegemony is always haunted by counter-hegemony, and actually counters structure of feeling, whereas there is no discussion a counter-habitus. Since habitus is a notion of innate social habit, there is no power of control that is associated with it. Hegemony, on the other hand, is about social practices that become a dominant way of doing things, but there is no sense of inherency. Since counter-hegemony is always a part of hegemony, this is why hegemony would only seem to support habitus, when in fact it is more of a challenge to Bourdieu’s concept. Counter-hegemony also opposes structures of feeling in this way because counter-hegemony is resistance to the common-sense, or emergent structure of social norms and practice, which is essentially what structure of feeling discusses. Although counter-hegemony challenges structure of feeling, which, in turn, challenges habitus, it does not actually support habitus.

A Votre Sante Teaching Note Essay

Additionally, the case questions require both quantitative and qualitative analyses of the business issues faced by AVS. AVS has been used in a graduate-level managerial accounting class for MBAs, and would be most appropriate for an advanced undergraduate or a graduate-level accounting or MBA course. The detail in the case is rich enough to support a variety of analyses. Alternative uses could be to have the student construct a cost of goods manufactured statement or a traditional financial statement, both of which reinforce the differences between product and period costs. Additionally, alternative decision analysis questions could be developed using the variable and fixed cost structures described in the case. Case question number two is only one example of a potential decision analysis question. The contribution margin income statement (Teaching Note Exhibit 1) is fairly straightforward, with the following concepts or calculations causing the most difficulty: The inclusion of liquor taxes and sales commissions in variable costs: These are both period expenses, but are clearly based upon the number of bottles sold, and therefore are included in the variable costs. Where to include the wine master expense: Since the wine master is paid according to number of blends, not number of bottles, this expense is listed as a fixed cost. Arguably, it could be listed as a variable cost, given that the cost will be based on the number of wines produced. As part of the discussion we will examine the rationale behind listing wine master as a fixed or a variable expense. Barrel expense: The case states that the barrels produce the equivalent of 40 cases of wine. A case of wine is post-fermentation/bottling and therefore after the 10% loss has occurred. The barrels contain the wine at the start of the process. Therefore, there have to be enough barrels to hold all the wine at the beginning of the process, not at the end. This factor results in 63 (62.5) barrels being required for the harvest2. Teaching Note Exhibit 1: Contribution Margin Income Statement Part b asks, â€Å"What is the maximum amount that AVS would pay to buy an additional pound of Chardonnay grapes?† There are three parts to calculating this answer: the benefit from the additional Chardonnay wine to be sold, the relevant costs related to producing this wine and the opportunity cost of not producing as much Blanc de Blanc wine. Teaching Note: Exhibit 2 displays the calculations relevant to this decision. Chardonnay regular wine requires a 2 to 1 mixture of Chardonnay and generic white grapes. Therefore, the 18,000 pounds of Chardonnay grapes will be combined with 9,000 pounds of generic white grapes. The 27,000 pounds of grapes will result in an additional 9,000 bottles of new Chardonnay regular wine being produced. However, it will also result in a 3,000-bottle decrease in the amount of Blanc de Blanc wine produced, since some generic grapes will now be used for the Chardonnay-regular wine. Recall that only Chardonnay wine is processed in barrels.

Political Issues essays

Political Issues essays Actions that stem directly from political issues can almost always be critiqued and criticized by the general public. However, one might come to contemplate about what might such notorious philosophers, such as Machiavelli, Locke, and Hobbes, say about a political movement such as a protest against war. The minds of these great thinkers varied in distinctive ways however their thoughts conveyed or at least had similar focal points. What will be analyzed and deduced from their writings is what each philosopher would probably comment about a protest held against a war with Iraq. However, what must be noted are the origins of the war and the many possible reasons in which the protest is being held. This is very essential because the opinions of these philosophers will sway greatly if the motives of the war differ from what the U.S government claims. The first assumption that must be made is that the reasons for going to war would be to disarm Iraq of weapons of mass destruction. The reason being security for themselves as well as other countries in which Iraq could possibly harm. A second assumption would be in order to gain control over oil, a natural resource, that is held in Iraq. The third and last noted reason would be to save and free the people of Iraq from the brutal force of the government that are taking away their natural human rights. One must also assume that the alternative from going to war would be peaceful negotiation. The following arguments will be made assuming that the protests are being held against the United States from going to war with Iraq for the acknowledged reasons. The first argument made will be assuming that the protests are against the United States going to war with Iraq in order to disarm them from weapons of mass destruction in order to protect the U.S as well as other countries. The protests are held in order to avoid death that will occur in the chance of war as well as the possibi...

The Definition of Falling Action in Literature

The Definition of Falling Action in Literature The falling action in a work of literature is the sequence of events that follow the climax and end in the resolution. The falling action is the opposite of the rising action, which leads up to the plots climax. Examples of Falling Action in Literature There are many examples of falling action in literature because almost every story or plot requires a falling action to reach a resolution. Most storylines, whether in a memoir, novel, play, or movie have a  falling action that  helps  the plot progress toward its end. If you see some titles here that you recognize, but havent read them yet, then beware! These examples contain spoilers.   Harry Potter and the Sorcerer’s Stone In Harry Potter and the Sorcerer’s Stone, by J.K. Rowling, the falling action occurs after the climax of Professor Snapes apparent hex upon Harry during the Quidditch match. Harry, Ron, and Hermione learn about the Sorcerers Stone, then Voldemort attacks Harry in the Forbidden Forest, and Harry faces Professor Quirrell and Voldemort. Little Red Riding Hood Another example of falling action can be found in the folk tale  Little Red Riding Hood. The story reaches its climax when the wolf announces that he will eat the young protagonist. The series of events that happen after this conflict to lead to the resolution are the falling actions. In this case, Little Red Riding Hood screams out, and woodcutters from the forest come running to the grandmothers cottage. The story isnt yet resolved, but these falling actions are leading to its resolve.   Romeo and Juliet   A final example is slightly less obvious, depicted in the classic play  Romeo and Juliet  by William Shakespeare. After the climactic moment in the play, following the point when Romeo kills Tybalt, the falling action indicates that the plot is headed toward a sad, but unavoidable, resolution. Juliets feelings are confused between her love for her new secret husband, who is banished from Verona and mourning her beloved cousin who just died by Romeos hand. The combination of confused emotion and distance ends up strengthening  the couples assumption that they can never be in a relationship that is approved by their families.

Family Business Research Essay Example | Topics and Well Written Essays - 2000 words

Family Business Research - Essay Example The first is a methodological approach that starts with a household or family-level analysis, making gender a foundation stone (Wheelock and Oughton, 1996, 151). Second, we introduce an institutional perspective that places business in its micro and macro context (Wheelock and Mariussen, 1997, Press). We look at the relations between different forms of rationality in the business and the family, allowing a more holistic analysis than one based on the more orthodox concept of rational economic man. Business behavior tends to be modeled on entrepreneurial responses to risk. The analysis here strives not to see small business as large business in microcosm. It recognizes small business as an "uneasy stratum" (Bechhofer and Elliott, 2001) with characteristics of labor as well as capital - an institution that can only be fully understood when seen in its social and economic context. Why should a household approach be used in small-business research? Concepts of "flexibility" - both in the production system as a whole and in individual large firms - have become fashionable explanations for competitive responses as a crisis of Fordist mass-production methods. Given the key role played by small firms in these models, it is surprising that there has been so little investigation of the forms that flexibility might take within the small business itself (Wheelock, 2002b, 162; Mariussen and Wheelock, 1997, 15). The forms flexibility takes within the smallest firms will be, at least in part, a function of how they are embedded in household, family, and other social networks in the informal or complementary economy (Wheelock and Oughton, 1996, 153). Studies of small businesses in restructuring economies showed a close interrelationship between work for the business and the family, to an extent that justified the use of the term "family economic unit" (Wheelock, 1992b, 16 3). This is supported by other qualitative studies

Enterprise resource planning Research Paper Example | Topics and Well Written Essays - 1500 words

Enterprise resource planning - Research Paper Example By definition, Extended ERP components is the entire set of collaborating companies, both up-stream and down-stream, from raw materials to end-use consumption, that work together to bring value to the market- place. The advantages of extended enterprise derive from a firm’s ability to quickly utilize the entire network of suppliers, vendors, buyers, and customers. The flows of information that lie at the core of the coordination and collaboration among network members not only link disparate information sources, they also provide an opportunity to build knowledge based tools. Companies engage in long term partnering relationships built around mutual goals and accompanied by very rich and deep exchange of information. Members view that their element of joint action, value chain partners as still retaining some aspects of self serving behavior. Business intelligence (BI) is an information technology concept, representing current state of the historical development of information technologies. This development started in the mid 1960s with the first versions of management information systems (MIS).Therefore BI is more than the fashion and needs to be defined, categorized and explained and analyzed. Of course, information systems are an important variable determining the design of organizations and demand in some cases organizational restructuring processes. Thus BI has direct impact on the organizational structure without giving any direct recommendations and prescriptions as to what the organization is supposed to end up like. CRM uses information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes such as sales, marketing, and services that interact with a company’s customers. CRM systems also create an IT framework of Web-enabled software and databases that integrates these processes with the rest of a company’s business operations. CRM systems include a family of software

Quality management Assignment Example | Topics and Well Written Essays - 1000 words - 4

Quality management - Assignment Example In this experiment, a one half fractional experiment was conducted. It was done in k – 1 runs. The experiment was conducted to assess the effect of five factors on a coil spring. The free height of the spring was denoted as y. The goal of the experiment was to obtain a height of eight inches or a height as close to eight inches as possible. The number of factors used was five, while the number of runs was sixteen with three replicates for each run. The experiment was a 2k – 1 design, thus it was a one half fractional factorial experiment. It was denoted as 25 – 1. Based on the evaluation of the cause and effects, the following factors and factor levels were chosen for the experiment. Below is a table of the factors and the factor levels for both high denoted by a plus sign and low depicted by a minus sign. From the determined factors and factor levels the fractional factorial experiment was conducted. This was because the number of runs needed for a full factorial experiment would have been a lot. Because the resources at hand coupled with the knowledge that the relations would not be of concern, a 25 – 1 fractional factorial was used. The design matrix and the height data are given in the table below. Thus, the design was not able to differentiate D from ABC. Effect D which was the main effect was aliased with the interaction ABC. Hence, D was equal to ABC which meant that I was equal ABCD. I was the column of plus’s which was the characteristic element in the set of multiplications. I is equal to ABCD was the characterizing relation for the 25-1 design experiment. This means that all the effect aliasing relations are: A = BCD, B = ACD, C = ABD, D = ABC, AB = CD, AC = BD, AD = BC, E = ABCDE, AE = BCDE, BE = ACDE, CE = ABDE, DE = ABCE, ABE = CDE, ACE = BDE, BDE = BCE. The main effect is named clear if it is not aliased with other main

Merger Acquisitions and Value Creation

Merger Acquisitions and Value Creation LITERATURE REVIEW Many firms used corporate mergers or acquisitions as business strategy to accomplish various objectives. For instance, businesses used acquisitions to enter into new markets and regions, allocate capital or gain technical expertise and knowledge. Therefore, organizations often utilize strategic mergers and acquisitions in order to grow or survive. However most of the poorly managed acquisitions or merger resulted in disappointing performance and up to 50 percent are considered unsuccessful (see Louis, 1982). Furthermore, according to Smith and Hershman (1997), it was held by Mercer Management Consulting that in 1980s, 57 percent of acquisitions were failed and the successful corporate acquisitions in 1990s were hardly 50 percent (p.39, cited in Smith and Hershman, 1997). To date, merger or acquisition is one of the most widely used instruments to enhance the growth of organizations. Systematic and sophisticated corporate research helps companies to understand the pre and post-acquisitions performance and achieving other business objectives (as discussed in Singh Zollo, 2000). However, according to Sirower (1997), empirical academic literature does not provide any clear understanding, which facilitates the managers to maximise the success of acquisitions or merger programs. Therefore, understanding the source of value creation is critical to determine the causes of failure or success in corporate merger or acquisitions. The literature review presented in this section critically evaluates and analyze the earlier studies in order to solve the paradigm of Merger Acquisitions and Value Creation. Corporate Acquisitions and Their Research Paradigms Datta et al. (1992) suggested two distinct frameworks for acquisitions programmes to identify sources of shareholders wealth i.e. strategic management and financial economics literature and both approaches follow different research directions. The strategic management approach focused on factors that have been controlled by management. For instance, Datta et al (1992) suggested that in order to assess the post-acquisition performance, this approach attempts to differentiate between various diversification strategies and types of acquisitions or types of payment in acquisitions (i.e. stock vs. cash). In contrast, financial economic research attempted to prove the unique hypothesis of market for corporate control. This approach views the acquisition activities as a contest among different management teams in a competition to control corporate firms as argued by Datta et al (1992). Therefore, this view suggests that the value creation through merger or acquisitions is decided by capital market and its characteristics including its competitiveness such as regulatory modification affecting a particular market (see Datta et al, 1992). However, these two methodologies are unable to explain the factors resulting in unsuccessful corporate acquisitions. Thus, many academics such as Chatterjee (1992), attempted to identify critical variables of ineffective performance in acquisitions or merger activities by studying the relationship between post-acquisition performance and integration. While the initial notion by Kitching (1967) that the key factor for a successful corporate acquisition is the post-acquisition integration process, it was recognised that acquisition or merger activities create value not only from strategic factors realised through synergies (see Chatterjee, 1992), but also from the process itself, which leads to anticipated synergistic factors, as reflect in capital market expectations (see Jemison and Sitkin, 1986). Therefore, it is very important to understand the processes and factors resulting in corporate merger and acquisitions value creation before we critically evaluate the research paradigm of value creation. Evolution of Acquisitions In order to improve the understanding of the research hypothesis, firstly this paper attempts to review trends of acquisitions and mergers followed by comments on value creation during these periods. For illustration purposes, I will focus my attention to the US economy considering the fact that corporate sector is enriched with these activities and capital markets of United States are much developed comparative to rest of the world. Following section presents the analysis of corporate mergers and acquisitions programmes dated back to1897. The First Wave, 1897-1904: According to Gaughan (1999), this particular period is dominated by horizontal acquisitions resulting surge in stock markets and ultimately creation of monopolies. Some of the todays giant conglomerates created in first wave include General Electric, American Tobacco, Du Pont, Kodak and Standard Oil (see Gaughan, 1999). First Merger Wave 1897 1904 Year Number of Mergers 1897 69 1898 303 1899 1208 1900 340 1901 423 1902 379 1903 142 1904 79 Table 3.1 First Merger Wave 1897 1904 Source: Gaughan (1999), p.24 Figure 3.1 First Merger Wave 1897 -1904 Data Source: Gaughan (1999), p.24 The Second Wave, 1916-1929: In contrast to first wave which is termed as merging for monopoly, the second wave is termed as merging for oligopoly. Gaughan (1999) pointed out that the reason of this terminology is the predominance of vertical or horizontal integration of companies during the period of 1925 to end of the decade. Moreover, Jemison and Stikin (1986) argued that the abundant capital availability stimulated by favourable economic conditions resulted in prominent corporate mergers and integration. Further according to Gaughan (1999), the antitrust law force during this era was stricter comparative to the first merger wave, which created more oligopolies and vertical integration and fewer monopolies in contrast to earlier wave. The Third Wave, 1965-1969: According to Gaughan (1986), the decade of 1960s observed controversial of the merger and acquisitions activities and termed as conglomerates. The companies such as ITT (International Telephone and Telegraph Corporation, USA) and Textron acquired numerous unrelated businesses to diversify and to reduce cyclic risks. Furthermore, during this period the conglomerates not only grew rapidly and profitably but the management were perceived to be skilful as well, which facilitated the diversity in acquisitions and operations of the companies (see Judelson, 1969). For instance, Geneen (1984) documented that during this wave ITT built itself into a highly diversified conglomerate by acquiring various businesses such as insurance, food and car rentals. Moreover, he found that executives of the company used the advanced financial tools like detailed budgeting and tight financial controls to make these acquisitions successful and well-functioning. Following figure presents the overview of the a ctivities during the period: Scholars like Goold and Luchs (1993) argued that general management skills were one of the vital factors in successful acquisitions and mergers during this era, which also helped corporations to diversify in different businesses. Moreover, engaging in unrelated business by many companies was based on the assumptions that different businesses would not require dissimilar managerial skills (see Goold and Luchs, 1993). However, in late 1960s companies start facing performance problems and the share price of these conglomerates such as Textron fell almost 50% comparative to 9% drop in Dow Jones Industrial average (see Bonge and Coleman, 1972). Furthermore, in early 1970s companies began to experience profitless growth like General Electric sales increased by 40% from 1965 to 1970 but its profit actually dropped (see Goold and Quinn, 1990). According to Gaughan (1999), the era has been ended when ITT spin off in three different companies. It is perceived that most of the mergers during the period failed and companies jettisoned their under-performing and unrelated business to face the competitive environment (see Sikora, 1995). In addition, Sadlter et al (1997) observed that the combined value of businesses separated from their parent firms significantly increased to more than $100 billion in 1996 comparative to 1993 figure of $17.5 billion. Acquisitions in the 1970s: The merger and acquisition activities decreased significantly in 1970s, which can be seen in the following figure. Figure 3.3 Merger Acquisitions in 1970 -1980 Source: Gaughan (1999), p.36 As a consequence of problem in merger and acquisitions activities experienced by conglomerates, the senior executives realised that only general management skills are not sufficient for a successful transactions (see Chandler, 1962). Therefore, they focused their attentions toward the long term companys objectives instead of operating of strategic business units (see Christensen, 1965). Andrews (1971) highlighted that this change introduced the concept of corporate strategy for firms and most CEOs of the organizations started accepting that strategy is their unique and primary task. However, corporate strategy poses some practical problem and did not help executives in deciding about allocation of resources among businesses especially when each investment proposal has a different strategy (see Goold and Luchs, 1993). Moreover, Bower (1970) argued that investment decision should be part of overall business strategy rather than prevaricate on project to project basis. In 1970s these revolutions in corporate finance lead to the development of portfolio planning by Boston Consulting Group (1970). Soon, portfolio planning became famous in corporate sectors and according to the survey of Haspeslagh (1982) by 1979, 45 percent of the Fortune 500 companies were using portfolio planning in some form. However, with the passage of time problems related to portfolio planning emerged. As Goolds and Luchs (1993), argued that the corporate manager with long experience of particular sector of the industry found extremely difficult to manage their newly acquired businesses in vibrant and unfamiliar sectors. Consequently, this affected the performance of new acquisitions or mergers of the firms. In search of solution to this problem Hamermesh and White (1984) found that administration was a vital factor in explain business performance of mergers or acquisitions but many organizations incorrectly addressed the approach. The Fourth Wave, 1981-1989: The decade of 1980s seen another merger wave in business world. In this period, merger deals were frequent and larger and total value of mergers were approximately $.13 trillion in US (see Sikora, 1995). This was influenced by service sector and significant support from investors; lenders and globalization facilitated companies to finance the buyout deals (see Sikora, 1995). Moreover, the reasons of the fourth merger wave were excess capacity (see Jensen, 1993), agency problems (see Jensen, 1988), market failure (see Shleifer Vishny, 1997), and tax and antitrust law changes (see Bhagat et al, 1990). It seems that during 80s, diversified firms do not have capacity to create values therefore companies start re-thinking about role of corporate management as well as appropriate strategies for diversified firms. As highlighted by Goold and Luchs (1993) highlighted that in order to survive firms cut back costs and scale down their staffs but these were not adequate to create value. Furthermore, they argued that diversification strategies failed to create value for many businesses. Nevertheless, these failures compelled senior managers to transform their primary goals to creating shareholders values instead of building huge businesses (see Porter, 1987). Moreover, management of the companies started evaluating corporate performance like stock market by using economic indicator instead of accounting measures and take whatever steps were essential to enhance the value of their firms stock (see Goold and Luchs, 1993). However, value based planning based on financial tools of Return on Equity (ROE), internal rate of return and discounted cash flow provided different views to managers about competitive advantages and stock prices (see Rappaport, 1986). Further, Goold and Luchs (1993) pointed out that a higher stock price could be a reward for creating value. However, during the era of 80s firms that did not diversify into unrelated businesses and specialize into their core industry were able to create value and turn out to be successful companies (see Peter and Waterman 1982). Mintzberg and Lampel (1999) also support this notion by arguing that focused corporations which know their customers, have deep knowledge and understand their missions were better able to create value in contrast to companies that applied the diversification concept of value creation. In summary of the merger and acquisitions activities in 1960s and 1980s, it can be assert that conglomeration and diversification were the dominant trends in 1960s contrast to specialization and consolidations phenomena of 1980s. However, empirical evidence on value creation tends to suggest that significant merger and acquisitions of 60s reversed subsequently and did not lead to profitability. According to Shleifer and Vishny (1994) many of the conglomerates created in 1960s were destroyed in 1980s, which provides the evidence of failure in notion of merger acquisitions and value creation that was not expected in 1960s. The Current Wave, 1990-Present: According to Gaughan (1999), in contrast to 1960s decade of conglomerates and 1980s period of Leveraged Buyouts (LBO), the dominant deals of 90s were designed with a view to fit strategically among merging firms. Moreover, the forces behind the merger and acquisitions activities were different than earlier periods and corporate sector seen some of mega-deals during that period. For instance in 1996, the top 100 deals of merger and acquisitions were worth more than $1 billion or approximately 53.5% of total transactions (see Sikora, 1997). Merger Acquisitions in 1990s Year Number of Deals Value ($ Billions) 1980 1558 34.8 1981 2328 69.5 1982 2299 60.7 1983 2395 52.7 1984 3176 126.1 1985 3490 146.1 1986 2523 220.8 1987 2517 196.5 1988 3011 291.3 1989 3825 325.1 1990 4312 206.8 1991 3580 143.1 1992 3752 125.3 1993 4148 177.3 1994 4962 276.5 1995 6209 375.0 1996 6828 550.7 Table 3.2 Merger and Acquisitions in 1990s Data Source: (www.mergerstat.com) The era of 90s was said to the decade of Consolidation; which means combination of operating and management resources between two companies as well as their stocks, assets and liabilities (see Lipin, 1997). Furthermore, in 1990s, stable economic environment, relax antitrust laws, stock markets favourable conditions and low cost of capital were the catalyst of merger and acquisition trends. However, still many firms failed to create shareholder value and according to study by Mercer Management Consulting Inc. (1997) 48 percent of mergers failed to generate shareholder value in 90s comparative to 57 percent failure of 1980s (p.39, cited in Smith and Hershman, 1997). Nonetheless, the firms in 90s believed that larger pools of assets are essential either to survive or to grow but the question remains that how to discover ways to create value for portfolio of firms businesses? (see Goold and Luchas, 1993). To resolve this anomaly, three possible explanations have been identified: Firstly, as shown by Porter (1985) that diversification should be limited to companies which have synergy potential and without synergy a diversified business is nothing more than mutual fund. He also suggested that synergies can be attained when the portfolio of businesses create values more than sum of its individual components. Besides, the notion of synergy should be based on economies of scale and cost saving strategies (see Porter, 1985). However, in practice it has been found by studies such as Chatterjee (1992) that gaining synergy is not an easy task and most acquisitions and merger gains arise from either disposals of assets or from restructuring rather than synergistic benefits. It seems that synergy was a primary rationale for merger and acquisitions in the era but remains anomaly from value creation prospective as discussed by Goold and Luchs (1993). Secondly, the corporate strategy of the firms should focus on exploiting core competencies. For instance, Prahalad and Hamel (1989) suggested that the corporate portfolio should be based on technological competencies instead of portfolio of businesses. Similarly, Itami (1989) argued that invisible assets like reputation, brand names or customers list are the most valuable source for sustaining competitive advantage and could be used to create value by exploiting competitive opportunities. Furthermore, other competencies such as technology or managerial expertise can also be used to enhance the performance of business portfolio (see Haspeslagh and Jemison, 1991). However, this approach also has some drawbacks; for example, Goold and Luchs, pointed out that it can be difficult to assess the contribution of investment in building the competencies of a business especially when the investment is in new business area. Thirdly, the best way to create value via successful diversification is to build a portfolio of businesses, which fits with the managers logic and their management style (see Parahalad and Bettis, 1986). If conglomerates diversification is based on business with similar strategic logic then its possible to add value to business by adopting a common approach across all the business units. For instance Goold and Luchs (1993) exposed that sharing the skills or activities across organization can help corporate management to realize synergies. Moreover, Goold and Campbell (1987) found the evidence that top executives also find it difficult to deal with a wide range of styles and approaches. Review of Major Areas in MA This section presents the literature review of major areas focused by academics in merger and acquisition field. Consequently following five sub-sections have been established to review the academic literature: Performance Success in Merger and Acquisitions People in Merger and Acquisitions International Prospects of Merger and Acquisitions Best Practices in Merger and Acquisitions Valuation Issues in Merger and Acquisitions The measurement of success in merger and acquisition activities is mainly through quantitative research and is subject to various studies such as Gosh (2001); Healy et al (1992), in the field of finance or economics and also other directly related fields. People are normally unobserved in merger and acquisitions, however extensive studies like Bliss and Rosen (2001), addressed issues from ethical and organizational learning to more in depth personal perspective. Similarly, increasing trend of international trade and globalization attracted the attention of many researchers, for instance Rossi and Volpin (2004). The valuation of the companies is often overlooking in the field of merger and acquisitions. However, it is a very critical part of acquisition process and could be very helpful not only in the pre-acquisition stage but also during the acquisition process as well as at post-acquisition stage (see Becher, 2001). Finally, the best practices research in the field of merger and acquisition is usually done in the form of case studies but the quality and intensity of these studies vary widely (see Marks and Mirvis, 2001). Performance and Success in MA As stated before companies often engaged in the series of acquisitions and merger activities and early studies such as Barney (1988), tend to show that related acquisitions performed better than other acquisition transactions. However, relatedness itself does not create value for acquiring companies but synergy is the vital factor that helps companies to generate abnormal returns from acquisition programs. For example, Barney (1988) showed that synergistic cash flow stemming from relatedness, which is unique and private creates abnormal returns for shareholders of acquiring firm. However, later studies such as Hayward (2002), suggested that different level of relatedness results in various degree of success and moderately similar companies tend to be more successful than the companies that are highly similar or dissimilar in business or size to one another. He further concluded that if a firm experienced small losses in past acquisition in contrast to high losses or high gains then it has better chances of success in prospective acquisition. In addition, the timing of acquisition plays a vital role in success of the transaction and should not be too close or far-away from central acquisition (see Hayward, 2002). Similarly, Brown and Eisenhard (1997) argued that companies benefit differently depending upon their experimenting and timing of the merger and acquisition activities. Moreover, when the acquiring company has some inimitable resources then it can create value by utilizing these resources in targets company as suggested by Capron and Pistre (2000). However, they also added that if the source of synergies is recognized in target firm than market associate expected gains to target firm due to the competition among potential bidders. Consequently, this competition raises the price of target firm and would create value for shareholders of the target firm but also lead to under performance of acquirer. Nevertheless, performance success through merger and acquisitions is still controversial among academics as pointed out by Cording et al (2002). To resolve the issue Chatterjee (1992) measured the cumulative average of abnormal returns (CAAR) during the period of 11 months before the tender offer until 60 months after the tender offer. After studying the sample of 577 tender offers between the periods of 1963 to 1986; he suggested that net gain arises for the economy from these transactions but it does not necessarily create gains for everyone involved in merger and acquisition. More specifically, CAAR after 60 months were observed to be negative for unsuccessful bidders, zero for successful bidder and positive for target company. Furthermore, Chatterjee (1992) found much higher positive CAAR for restructured target companies in contrast to non-restructured targets. Certain studies view the merger and acquisition transactions from a different prospective. For example, Golbe and White (1993) proved in their study that macroeconomic environments influence the merger activities and the number of merger transactions increases in time of economic expansion comparative to decrease in programme at the time of economic down turn.Similarly, Amburgey and Miner (1992) studied the effects of companies momentum on merger activities and suggested that managers follow the past patterns. The academics such as Capron (1999), also attempted to assess the performance of the merger and acquisition activities by conducting the survey of prime stakeholders in merger activities. He further concluded that the available financial data is too gross to allow the separation between the types of pure value-creating mechanism. Moreover, he also argued that more often the objective of the companies is to retain the top management team of the targets firm, whether its a conglomerate or related merger. International Prospects of MA The emergence of globalisation and increasing trends in international trade fasten the number of local as well as cross-border acquisitions and merger activities. For instance, the cross-border acquisition activities in United States increased to 19% in 1999 from 6% in 1985 (see Seth et al, 2001). According to the study of Seth et al (2001), the evidence suggests that there are three motives for cross-border acquisitions such as synergy seeking, managerilism and managerial hubris. Moreover, the research tends to show that there is a positive relationship between the level of value creation and reverse internalization, asset sharing, financial sharing and market seeking ( as discussed by Seth et al, 2001). In addition, there seems to be association between value creation and governance system of bidders country. For instance, Seth et al (2001) argued that bidding companies from group-oriented governance system like Japan and Germany appear to be engaged in acquisitions and merger activities with higher level of value creation in contrast to bidding firms from market oriented governance system such as United Kingdom. Further enhancement of research in the area of cross-border merger and acquisition suggests that experience in merger and acquisition activities can be utilized to create value in another country. For example, Gugler et al (2003) compared the data of 15 years and proved that post merger patterns are similar across different countries. Moreover, their evidence also signifies that there are no major differences between domestic and cross-border mergers as well as manufacturing and service sectors around the world. With the passage of time and in the era of globalization the merger and acquisitions activities are increasing especially in emerging economies. The multinational companies often use the tools of acquisition and mergers to penetrate in new markets and economies particularly in emerging countries such as Central and Eastern Europe (see Milman, 1999). However, in many countries MNC mergers and acquisitions are seen as threats by government agencies, privatized companies and state enterprises. Therefore, in order to develop a successful alliance the acquisition or merger program should be designed in such as way that creates value for companies as well as the host-country governments (see Rondinelli and Black, 2000). Lastly, yet the number of merger and acquisitions across border appears to be increasing but it seems difficult to integrate and manage the successful processes. Hence, Inkpen et al (2000) suggested that the companies should critically evaluate the areas of decision making, communication, networking and socialisation, communication and the structure of authority and responsibility before involving in the process of MA. People in MA Only looking to financial aspects might limit the understanding about the question why MA activities are so widely used by companies as a tool to grow. Hence, another area focused by academics, such as Karitzki and Brink (2003), is related to merger and acquisitions and people. Generally, one of the motives for merger activities is to follow the cost-cutting strategies including synergy and targets customers. Often, the employees are laid off in the process of merger and acquisitions and consequently this creates new but conflicting networks of relationships in new companies as suggested by Vermeulen and Barkema (2001). Thus, it affects the success and results in under-performance of merger and acquisition programmes. Therefore, considering the affects of MA on employee or managers of the potential target firms are of similar importance as financial issues. Similarly, the research in the area of executive compensation pointed out that prior to acquisition or merger, management of acquiring company receive significant higher packages comparative to the executives of target firms (see Lynch and Perry, 2002). Hence, these issues can lead to turnover and morale issues that ultimately affect the success of anticipated integration from MA. Furthermore, in extreme circumstances, issues like these emerging from dissimilarities create hurdles to achieve the objective of the original merger and acquisitions. Thus, reconciling the differences is one of the major issues faced by the combined company to create value (as discussed in Lynch and Perry, 2002). Moreover, successful merger or acquisition depends upon the people in both target and acquiring firms. The attitude and opinion of the employees regarding acquisition or merger can change over the time. Schweiger and DeNisi (1991) conducted the survey of employees and compared the attitudes in pre-acquisition and post-acquisition period. Their results show that attitudes of the employees three months after the announcement of merger changed significantly and turn towards continual negative consequences (see Schweiger and DeNisi, 1991). Likewise, Covin et al (1996) studied the attitude of 2845 employees from a large manufacturing concern in post merger period. The results show significant differences between the target firm and acquiring companys employees in satisfaction with merger. The employees of acquired company faced high level of dissatisfaction and ultimately felt more stress due to changes introduced after merger. In addition, this stress is aggravated due to the direct competition between target firm and acquiring company. Furthermore, Covin et al (1996) pointed out that factors such as loss of power and status, changes in salary or benefits and lack of managerial direction result in high level of stress and dissatisfaction from merger activities. Hence, it has been suggested that in addition to financial aspects these types of issues should not be overlooked in order to create value and to develop a successful merger and acquisition programme (see Karitzki and Brink, 2003). Best Practices in MA It is often suggested that acquisitions are predominantly unsuccessful and numerous studies like Aiello and Watkins (2000), confirmed this fact. However, generally the conditions and environment is relevant before judging the results. Furthermore, there is lack of research in answering the question; what would happen if both the companies continued in their own separate way. Therefore, estimating the successfulness of merger or acquisition is a tricky anomaly (as discussed in Chaudhuri and Tabrizi, 1999). Moreover, the unsuccessful MA activities are more highlighted in contrast to successful programmes. Ed Libby, the chairman and CEO of AllState stated that when MAs fails they draw more notice despite the fact that lot of other projects fails in business but no one can see them because they remain within internal walls of the companies (cited in Cary, 2000). As stated earlier, there is no one strategy that fits all kinds of merger and acquisition activities, however systematic approaches such as suggested by Jan Leschly, can help companies to develop a successful plan. Jan Leschly, retired CEO of SmithKline Beecham suggested that they put their people on the boards of different companies by investing small amounts. Once the companies get going then they decide whether to buy it completely or not (cited in Cary, 2000). Likewise, understanding the various components of merger process is very vital to develop a successful merger or acquisition deal. However, it is very hard to enumerate the components especially when these are integrated with each other. According to Marks and Mirvis (2001), the successfulness of merger and acquisition is highly depended on following factors: Acquisition Plan Implementation of this plan Post-acquisition cooperation between firms after acquisition Moreover, they collected a number of factors that were mentioned in previous research such as strategic objective, clear selection, search and selection process etc. They also argued that pre-acquisition planning is very important for successful merger and acquisition plan and more prepared the people will more synergies in a combination will result (see Marks and Mirvis, 2001). Similarly, Aiello and Watkins (2000) suggested that every MA deal pass through following five stages: Screening potential deal Reaching initial agreement Condu Merger Acquisitions and Value Creation Merger Acquisitions and Value Creation LITERATURE REVIEW Many firms used corporate mergers or acquisitions as business strategy to accomplish various objectives. For instance, businesses used acquisitions to enter into new markets and regions, allocate capital or gain technical expertise and knowledge. Therefore, organizations often utilize strategic mergers and acquisitions in order to grow or survive. However most of the poorly managed acquisitions or merger resulted in disappointing performance and up to 50 percent are considered unsuccessful (see Louis, 1982). Furthermore, according to Smith and Hershman (1997), it was held by Mercer Management Consulting that in 1980s, 57 percent of acquisitions were failed and the successful corporate acquisitions in 1990s were hardly 50 percent (p.39, cited in Smith and Hershman, 1997). To date, merger or acquisition is one of the most widely used instruments to enhance the growth of organizations. Systematic and sophisticated corporate research helps companies to understand the pre and post-acquisitions performance and achieving other business objectives (as discussed in Singh Zollo, 2000). However, according to Sirower (1997), empirical academic literature does not provide any clear understanding, which facilitates the managers to maximise the success of acquisitions or merger programs. Therefore, understanding the source of value creation is critical to determine the causes of failure or success in corporate merger or acquisitions. The literature review presented in this section critically evaluates and analyze the earlier studies in order to solve the paradigm of Merger Acquisitions and Value Creation. Corporate Acquisitions and Their Research Paradigms Datta et al. (1992) suggested two distinct frameworks for acquisitions programmes to identify sources of shareholders wealth i.e. strategic management and financial economics literature and both approaches follow different research directions. The strategic management approach focused on factors that have been controlled by management. For instance, Datta et al (1992) suggested that in order to assess the post-acquisition performance, this approach attempts to differentiate between various diversification strategies and types of acquisitions or types of payment in acquisitions (i.e. stock vs. cash). In contrast, financial economic research attempted to prove the unique hypothesis of market for corporate control. This approach views the acquisition activities as a contest among different management teams in a competition to control corporate firms as argued by Datta et al (1992). Therefore, this view suggests that the value creation through merger or acquisitions is decided by capital market and its characteristics including its competitiveness such as regulatory modification affecting a particular market (see Datta et al, 1992). However, these two methodologies are unable to explain the factors resulting in unsuccessful corporate acquisitions. Thus, many academics such as Chatterjee (1992), attempted to identify critical variables of ineffective performance in acquisitions or merger activities by studying the relationship between post-acquisition performance and integration. While the initial notion by Kitching (1967) that the key factor for a successful corporate acquisition is the post-acquisition integration process, it was recognised that acquisition or merger activities create value not only from strategic factors realised through synergies (see Chatterjee, 1992), but also from the process itself, which leads to anticipated synergistic factors, as reflect in capital market expectations (see Jemison and Sitkin, 1986). Therefore, it is very important to understand the processes and factors resulting in corporate merger and acquisitions value creation before we critically evaluate the research paradigm of value creation. Evolution of Acquisitions In order to improve the understanding of the research hypothesis, firstly this paper attempts to review trends of acquisitions and mergers followed by comments on value creation during these periods. For illustration purposes, I will focus my attention to the US economy considering the fact that corporate sector is enriched with these activities and capital markets of United States are much developed comparative to rest of the world. Following section presents the analysis of corporate mergers and acquisitions programmes dated back to1897. The First Wave, 1897-1904: According to Gaughan (1999), this particular period is dominated by horizontal acquisitions resulting surge in stock markets and ultimately creation of monopolies. Some of the todays giant conglomerates created in first wave include General Electric, American Tobacco, Du Pont, Kodak and Standard Oil (see Gaughan, 1999). First Merger Wave 1897 1904 Year Number of Mergers 1897 69 1898 303 1899 1208 1900 340 1901 423 1902 379 1903 142 1904 79 Table 3.1 First Merger Wave 1897 1904 Source: Gaughan (1999), p.24 Figure 3.1 First Merger Wave 1897 -1904 Data Source: Gaughan (1999), p.24 The Second Wave, 1916-1929: In contrast to first wave which is termed as merging for monopoly, the second wave is termed as merging for oligopoly. Gaughan (1999) pointed out that the reason of this terminology is the predominance of vertical or horizontal integration of companies during the period of 1925 to end of the decade. Moreover, Jemison and Stikin (1986) argued that the abundant capital availability stimulated by favourable economic conditions resulted in prominent corporate mergers and integration. Further according to Gaughan (1999), the antitrust law force during this era was stricter comparative to the first merger wave, which created more oligopolies and vertical integration and fewer monopolies in contrast to earlier wave. The Third Wave, 1965-1969: According to Gaughan (1986), the decade of 1960s observed controversial of the merger and acquisitions activities and termed as conglomerates. The companies such as ITT (International Telephone and Telegraph Corporation, USA) and Textron acquired numerous unrelated businesses to diversify and to reduce cyclic risks. Furthermore, during this period the conglomerates not only grew rapidly and profitably but the management were perceived to be skilful as well, which facilitated the diversity in acquisitions and operations of the companies (see Judelson, 1969). For instance, Geneen (1984) documented that during this wave ITT built itself into a highly diversified conglomerate by acquiring various businesses such as insurance, food and car rentals. Moreover, he found that executives of the company used the advanced financial tools like detailed budgeting and tight financial controls to make these acquisitions successful and well-functioning. Following figure presents the overview of the a ctivities during the period: Scholars like Goold and Luchs (1993) argued that general management skills were one of the vital factors in successful acquisitions and mergers during this era, which also helped corporations to diversify in different businesses. Moreover, engaging in unrelated business by many companies was based on the assumptions that different businesses would not require dissimilar managerial skills (see Goold and Luchs, 1993). However, in late 1960s companies start facing performance problems and the share price of these conglomerates such as Textron fell almost 50% comparative to 9% drop in Dow Jones Industrial average (see Bonge and Coleman, 1972). Furthermore, in early 1970s companies began to experience profitless growth like General Electric sales increased by 40% from 1965 to 1970 but its profit actually dropped (see Goold and Quinn, 1990). According to Gaughan (1999), the era has been ended when ITT spin off in three different companies. It is perceived that most of the mergers during the period failed and companies jettisoned their under-performing and unrelated business to face the competitive environment (see Sikora, 1995). In addition, Sadlter et al (1997) observed that the combined value of businesses separated from their parent firms significantly increased to more than $100 billion in 1996 comparative to 1993 figure of $17.5 billion. Acquisitions in the 1970s: The merger and acquisition activities decreased significantly in 1970s, which can be seen in the following figure. Figure 3.3 Merger Acquisitions in 1970 -1980 Source: Gaughan (1999), p.36 As a consequence of problem in merger and acquisitions activities experienced by conglomerates, the senior executives realised that only general management skills are not sufficient for a successful transactions (see Chandler, 1962). Therefore, they focused their attentions toward the long term companys objectives instead of operating of strategic business units (see Christensen, 1965). Andrews (1971) highlighted that this change introduced the concept of corporate strategy for firms and most CEOs of the organizations started accepting that strategy is their unique and primary task. However, corporate strategy poses some practical problem and did not help executives in deciding about allocation of resources among businesses especially when each investment proposal has a different strategy (see Goold and Luchs, 1993). Moreover, Bower (1970) argued that investment decision should be part of overall business strategy rather than prevaricate on project to project basis. In 1970s these revolutions in corporate finance lead to the development of portfolio planning by Boston Consulting Group (1970). Soon, portfolio planning became famous in corporate sectors and according to the survey of Haspeslagh (1982) by 1979, 45 percent of the Fortune 500 companies were using portfolio planning in some form. However, with the passage of time problems related to portfolio planning emerged. As Goolds and Luchs (1993), argued that the corporate manager with long experience of particular sector of the industry found extremely difficult to manage their newly acquired businesses in vibrant and unfamiliar sectors. Consequently, this affected the performance of new acquisitions or mergers of the firms. In search of solution to this problem Hamermesh and White (1984) found that administration was a vital factor in explain business performance of mergers or acquisitions but many organizations incorrectly addressed the approach. The Fourth Wave, 1981-1989: The decade of 1980s seen another merger wave in business world. In this period, merger deals were frequent and larger and total value of mergers were approximately $.13 trillion in US (see Sikora, 1995). This was influenced by service sector and significant support from investors; lenders and globalization facilitated companies to finance the buyout deals (see Sikora, 1995). Moreover, the reasons of the fourth merger wave were excess capacity (see Jensen, 1993), agency problems (see Jensen, 1988), market failure (see Shleifer Vishny, 1997), and tax and antitrust law changes (see Bhagat et al, 1990). It seems that during 80s, diversified firms do not have capacity to create values therefore companies start re-thinking about role of corporate management as well as appropriate strategies for diversified firms. As highlighted by Goold and Luchs (1993) highlighted that in order to survive firms cut back costs and scale down their staffs but these were not adequate to create value. Furthermore, they argued that diversification strategies failed to create value for many businesses. Nevertheless, these failures compelled senior managers to transform their primary goals to creating shareholders values instead of building huge businesses (see Porter, 1987). Moreover, management of the companies started evaluating corporate performance like stock market by using economic indicator instead of accounting measures and take whatever steps were essential to enhance the value of their firms stock (see Goold and Luchs, 1993). However, value based planning based on financial tools of Return on Equity (ROE), internal rate of return and discounted cash flow provided different views to managers about competitive advantages and stock prices (see Rappaport, 1986). Further, Goold and Luchs (1993) pointed out that a higher stock price could be a reward for creating value. However, during the era of 80s firms that did not diversify into unrelated businesses and specialize into their core industry were able to create value and turn out to be successful companies (see Peter and Waterman 1982). Mintzberg and Lampel (1999) also support this notion by arguing that focused corporations which know their customers, have deep knowledge and understand their missions were better able to create value in contrast to companies that applied the diversification concept of value creation. In summary of the merger and acquisitions activities in 1960s and 1980s, it can be assert that conglomeration and diversification were the dominant trends in 1960s contrast to specialization and consolidations phenomena of 1980s. However, empirical evidence on value creation tends to suggest that significant merger and acquisitions of 60s reversed subsequently and did not lead to profitability. According to Shleifer and Vishny (1994) many of the conglomerates created in 1960s were destroyed in 1980s, which provides the evidence of failure in notion of merger acquisitions and value creation that was not expected in 1960s. The Current Wave, 1990-Present: According to Gaughan (1999), in contrast to 1960s decade of conglomerates and 1980s period of Leveraged Buyouts (LBO), the dominant deals of 90s were designed with a view to fit strategically among merging firms. Moreover, the forces behind the merger and acquisitions activities were different than earlier periods and corporate sector seen some of mega-deals during that period. For instance in 1996, the top 100 deals of merger and acquisitions were worth more than $1 billion or approximately 53.5% of total transactions (see Sikora, 1997). Merger Acquisitions in 1990s Year Number of Deals Value ($ Billions) 1980 1558 34.8 1981 2328 69.5 1982 2299 60.7 1983 2395 52.7 1984 3176 126.1 1985 3490 146.1 1986 2523 220.8 1987 2517 196.5 1988 3011 291.3 1989 3825 325.1 1990 4312 206.8 1991 3580 143.1 1992 3752 125.3 1993 4148 177.3 1994 4962 276.5 1995 6209 375.0 1996 6828 550.7 Table 3.2 Merger and Acquisitions in 1990s Data Source: (www.mergerstat.com) The era of 90s was said to the decade of Consolidation; which means combination of operating and management resources between two companies as well as their stocks, assets and liabilities (see Lipin, 1997). Furthermore, in 1990s, stable economic environment, relax antitrust laws, stock markets favourable conditions and low cost of capital were the catalyst of merger and acquisition trends. However, still many firms failed to create shareholder value and according to study by Mercer Management Consulting Inc. (1997) 48 percent of mergers failed to generate shareholder value in 90s comparative to 57 percent failure of 1980s (p.39, cited in Smith and Hershman, 1997). Nonetheless, the firms in 90s believed that larger pools of assets are essential either to survive or to grow but the question remains that how to discover ways to create value for portfolio of firms businesses? (see Goold and Luchas, 1993). To resolve this anomaly, three possible explanations have been identified: Firstly, as shown by Porter (1985) that diversification should be limited to companies which have synergy potential and without synergy a diversified business is nothing more than mutual fund. He also suggested that synergies can be attained when the portfolio of businesses create values more than sum of its individual components. Besides, the notion of synergy should be based on economies of scale and cost saving strategies (see Porter, 1985). However, in practice it has been found by studies such as Chatterjee (1992) that gaining synergy is not an easy task and most acquisitions and merger gains arise from either disposals of assets or from restructuring rather than synergistic benefits. It seems that synergy was a primary rationale for merger and acquisitions in the era but remains anomaly from value creation prospective as discussed by Goold and Luchs (1993). Secondly, the corporate strategy of the firms should focus on exploiting core competencies. For instance, Prahalad and Hamel (1989) suggested that the corporate portfolio should be based on technological competencies instead of portfolio of businesses. Similarly, Itami (1989) argued that invisible assets like reputation, brand names or customers list are the most valuable source for sustaining competitive advantage and could be used to create value by exploiting competitive opportunities. Furthermore, other competencies such as technology or managerial expertise can also be used to enhance the performance of business portfolio (see Haspeslagh and Jemison, 1991). However, this approach also has some drawbacks; for example, Goold and Luchs, pointed out that it can be difficult to assess the contribution of investment in building the competencies of a business especially when the investment is in new business area. Thirdly, the best way to create value via successful diversification is to build a portfolio of businesses, which fits with the managers logic and their management style (see Parahalad and Bettis, 1986). If conglomerates diversification is based on business with similar strategic logic then its possible to add value to business by adopting a common approach across all the business units. For instance Goold and Luchs (1993) exposed that sharing the skills or activities across organization can help corporate management to realize synergies. Moreover, Goold and Campbell (1987) found the evidence that top executives also find it difficult to deal with a wide range of styles and approaches. Review of Major Areas in MA This section presents the literature review of major areas focused by academics in merger and acquisition field. Consequently following five sub-sections have been established to review the academic literature: Performance Success in Merger and Acquisitions People in Merger and Acquisitions International Prospects of Merger and Acquisitions Best Practices in Merger and Acquisitions Valuation Issues in Merger and Acquisitions The measurement of success in merger and acquisition activities is mainly through quantitative research and is subject to various studies such as Gosh (2001); Healy et al (1992), in the field of finance or economics and also other directly related fields. People are normally unobserved in merger and acquisitions, however extensive studies like Bliss and Rosen (2001), addressed issues from ethical and organizational learning to more in depth personal perspective. Similarly, increasing trend of international trade and globalization attracted the attention of many researchers, for instance Rossi and Volpin (2004). The valuation of the companies is often overlooking in the field of merger and acquisitions. However, it is a very critical part of acquisition process and could be very helpful not only in the pre-acquisition stage but also during the acquisition process as well as at post-acquisition stage (see Becher, 2001). Finally, the best practices research in the field of merger and acquisition is usually done in the form of case studies but the quality and intensity of these studies vary widely (see Marks and Mirvis, 2001). Performance and Success in MA As stated before companies often engaged in the series of acquisitions and merger activities and early studies such as Barney (1988), tend to show that related acquisitions performed better than other acquisition transactions. However, relatedness itself does not create value for acquiring companies but synergy is the vital factor that helps companies to generate abnormal returns from acquisition programs. For example, Barney (1988) showed that synergistic cash flow stemming from relatedness, which is unique and private creates abnormal returns for shareholders of acquiring firm. However, later studies such as Hayward (2002), suggested that different level of relatedness results in various degree of success and moderately similar companies tend to be more successful than the companies that are highly similar or dissimilar in business or size to one another. He further concluded that if a firm experienced small losses in past acquisition in contrast to high losses or high gains then it has better chances of success in prospective acquisition. In addition, the timing of acquisition plays a vital role in success of the transaction and should not be too close or far-away from central acquisition (see Hayward, 2002). Similarly, Brown and Eisenhard (1997) argued that companies benefit differently depending upon their experimenting and timing of the merger and acquisition activities. Moreover, when the acquiring company has some inimitable resources then it can create value by utilizing these resources in targets company as suggested by Capron and Pistre (2000). However, they also added that if the source of synergies is recognized in target firm than market associate expected gains to target firm due to the competition among potential bidders. Consequently, this competition raises the price of target firm and would create value for shareholders of the target firm but also lead to under performance of acquirer. Nevertheless, performance success through merger and acquisitions is still controversial among academics as pointed out by Cording et al (2002). To resolve the issue Chatterjee (1992) measured the cumulative average of abnormal returns (CAAR) during the period of 11 months before the tender offer until 60 months after the tender offer. After studying the sample of 577 tender offers between the periods of 1963 to 1986; he suggested that net gain arises for the economy from these transactions but it does not necessarily create gains for everyone involved in merger and acquisition. More specifically, CAAR after 60 months were observed to be negative for unsuccessful bidders, zero for successful bidder and positive for target company. Furthermore, Chatterjee (1992) found much higher positive CAAR for restructured target companies in contrast to non-restructured targets. Certain studies view the merger and acquisition transactions from a different prospective. For example, Golbe and White (1993) proved in their study that macroeconomic environments influence the merger activities and the number of merger transactions increases in time of economic expansion comparative to decrease in programme at the time of economic down turn.Similarly, Amburgey and Miner (1992) studied the effects of companies momentum on merger activities and suggested that managers follow the past patterns. The academics such as Capron (1999), also attempted to assess the performance of the merger and acquisition activities by conducting the survey of prime stakeholders in merger activities. He further concluded that the available financial data is too gross to allow the separation between the types of pure value-creating mechanism. Moreover, he also argued that more often the objective of the companies is to retain the top management team of the targets firm, whether its a conglomerate or related merger. International Prospects of MA The emergence of globalisation and increasing trends in international trade fasten the number of local as well as cross-border acquisitions and merger activities. For instance, the cross-border acquisition activities in United States increased to 19% in 1999 from 6% in 1985 (see Seth et al, 2001). According to the study of Seth et al (2001), the evidence suggests that there are three motives for cross-border acquisitions such as synergy seeking, managerilism and managerial hubris. Moreover, the research tends to show that there is a positive relationship between the level of value creation and reverse internalization, asset sharing, financial sharing and market seeking ( as discussed by Seth et al, 2001). In addition, there seems to be association between value creation and governance system of bidders country. For instance, Seth et al (2001) argued that bidding companies from group-oriented governance system like Japan and Germany appear to be engaged in acquisitions and merger activities with higher level of value creation in contrast to bidding firms from market oriented governance system such as United Kingdom. Further enhancement of research in the area of cross-border merger and acquisition suggests that experience in merger and acquisition activities can be utilized to create value in another country. For example, Gugler et al (2003) compared the data of 15 years and proved that post merger patterns are similar across different countries. Moreover, their evidence also signifies that there are no major differences between domestic and cross-border mergers as well as manufacturing and service sectors around the world. With the passage of time and in the era of globalization the merger and acquisitions activities are increasing especially in emerging economies. The multinational companies often use the tools of acquisition and mergers to penetrate in new markets and economies particularly in emerging countries such as Central and Eastern Europe (see Milman, 1999). However, in many countries MNC mergers and acquisitions are seen as threats by government agencies, privatized companies and state enterprises. Therefore, in order to develop a successful alliance the acquisition or merger program should be designed in such as way that creates value for companies as well as the host-country governments (see Rondinelli and Black, 2000). Lastly, yet the number of merger and acquisitions across border appears to be increasing but it seems difficult to integrate and manage the successful processes. Hence, Inkpen et al (2000) suggested that the companies should critically evaluate the areas of decision making, communication, networking and socialisation, communication and the structure of authority and responsibility before involving in the process of MA. People in MA Only looking to financial aspects might limit the understanding about the question why MA activities are so widely used by companies as a tool to grow. Hence, another area focused by academics, such as Karitzki and Brink (2003), is related to merger and acquisitions and people. Generally, one of the motives for merger activities is to follow the cost-cutting strategies including synergy and targets customers. Often, the employees are laid off in the process of merger and acquisitions and consequently this creates new but conflicting networks of relationships in new companies as suggested by Vermeulen and Barkema (2001). Thus, it affects the success and results in under-performance of merger and acquisition programmes. Therefore, considering the affects of MA on employee or managers of the potential target firms are of similar importance as financial issues. Similarly, the research in the area of executive compensation pointed out that prior to acquisition or merger, management of acquiring company receive significant higher packages comparative to the executives of target firms (see Lynch and Perry, 2002). Hence, these issues can lead to turnover and morale issues that ultimately affect the success of anticipated integration from MA. Furthermore, in extreme circumstances, issues like these emerging from dissimilarities create hurdles to achieve the objective of the original merger and acquisitions. Thus, reconciling the differences is one of the major issues faced by the combined company to create value (as discussed in Lynch and Perry, 2002). Moreover, successful merger or acquisition depends upon the people in both target and acquiring firms. The attitude and opinion of the employees regarding acquisition or merger can change over the time. Schweiger and DeNisi (1991) conducted the survey of employees and compared the attitudes in pre-acquisition and post-acquisition period. Their results show that attitudes of the employees three months after the announcement of merger changed significantly and turn towards continual negative consequences (see Schweiger and DeNisi, 1991). Likewise, Covin et al (1996) studied the attitude of 2845 employees from a large manufacturing concern in post merger period. The results show significant differences between the target firm and acquiring companys employees in satisfaction with merger. The employees of acquired company faced high level of dissatisfaction and ultimately felt more stress due to changes introduced after merger. In addition, this stress is aggravated due to the direct competition between target firm and acquiring company. Furthermore, Covin et al (1996) pointed out that factors such as loss of power and status, changes in salary or benefits and lack of managerial direction result in high level of stress and dissatisfaction from merger activities. Hence, it has been suggested that in addition to financial aspects these types of issues should not be overlooked in order to create value and to develop a successful merger and acquisition programme (see Karitzki and Brink, 2003). Best Practices in MA It is often suggested that acquisitions are predominantly unsuccessful and numerous studies like Aiello and Watkins (2000), confirmed this fact. However, generally the conditions and environment is relevant before judging the results. Furthermore, there is lack of research in answering the question; what would happen if both the companies continued in their own separate way. Therefore, estimating the successfulness of merger or acquisition is a tricky anomaly (as discussed in Chaudhuri and Tabrizi, 1999). Moreover, the unsuccessful MA activities are more highlighted in contrast to successful programmes. Ed Libby, the chairman and CEO of AllState stated that when MAs fails they draw more notice despite the fact that lot of other projects fails in business but no one can see them because they remain within internal walls of the companies (cited in Cary, 2000). As stated earlier, there is no one strategy that fits all kinds of merger and acquisition activities, however systematic approaches such as suggested by Jan Leschly, can help companies to develop a successful plan. Jan Leschly, retired CEO of SmithKline Beecham suggested that they put their people on the boards of different companies by investing small amounts. Once the companies get going then they decide whether to buy it completely or not (cited in Cary, 2000). Likewise, understanding the various components of merger process is very vital to develop a successful merger or acquisition deal. However, it is very hard to enumerate the components especially when these are integrated with each other. According to Marks and Mirvis (2001), the successfulness of merger and acquisition is highly depended on following factors: Acquisition Plan Implementation of this plan Post-acquisition cooperation between firms after acquisition Moreover, they collected a number of factors that were mentioned in previous research such as strategic objective, clear selection, search and selection process etc. They also argued that pre-acquisition planning is very important for successful merger and acquisition plan and more prepared the people will more synergies in a combination will result (see Marks and Mirvis, 2001). Similarly, Aiello and Watkins (2000) suggested that every MA deal pass through following five stages: Screening potential deal Reaching initial agreement Condu