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One specific phase that the author uses that can be applied to RBS is that innovations may force banks into decisions that are micro-functional, but macro-dysfunctional. In the case of RBS, leadership focus on reductionist metrics that offered increases in efficiencies in certain business functions, however by focusing on micro-functional areas of improvement the organization lost perspective on the macro benefits or losses incurred by a more comprehensive analysis. Furthermore, when examining possible herding behavior by industry executives, if these executives became focused on achieving the same competitive advantage through short-term gains in micro-functional areas and this behavior could potentially spill over and produce a flood of similar behaviors industry wide. Hence, which ever metric became the prefer analysis tool by executives or speculators could influence an entire industry and shift the industry toward inefficiencies.
The final perspective in which this paper will reflect upon in this particular case is from the view of governmental bodies that possess the regulatory potential to enact policies that can influence markets. It has been argued that most of the academic work that looks into these relationships focuses on corporate governance from an insider's point-of-view i.e. A shareholder's or director's perspective (Kordel, 2008). This principle-agent focus is argued to misrepresent of perspectives; mainly looking at the scenario from the governments perspective. This view has increasing implications with the emerging concession that irrationality has a place in the market place as previously mentioned.
Furthermore, the end result of this business case involved the governments of the UK and also the Dutch government acting as the lender of last resort in their decisions to bail out the respective banks when they in fact failed. Therefore, with the assumptions that irrational behavior exists and also that governments have recently have had to intervene to save the failing institutions, it is reasonable to speculate that this perspective will have an increasing role to provide regulatory mechanisms in the future to prevent similar situations from reoccurring.
The question thus arises to what extent governments should intervene to apply protective measures to prevent irrational behaviors or corporate misconduct in hopes of mitigating the social burdens that emerge from the resulting market inefficiencies. The scope of the answer exceeds the capabilities of this body of research and possibly the current state of academia. However, looking forward it is reasonable to believe that this research will be relentlessly pursued in the wake of the financial crisis and the emergence of the new discipline that directly challenges the very foundation of neo-classical economic theory.
Discussions about the failed acquisition attempt made by RBS and its strategic partners to successfully acquire ABN AMRO have been presented by examining the tragedy from different perspectives. By no means does this study represent a comprehensive analysis of all of the relevant factors that worked to shape the deal. Instead it has pointed to a relatively few of the more interesting aspects involved with this acquisition and related them to contemporary themes in developing academic disciplines.
Though Sir Fred Goodwin was resigned to accept a bulk of the responsibility for the failed acquisition, the corporate culture and the resulting boundaries that the CEO must operate within can also be considered to be contributors to the drama. The old adage states that no one man is an island an in the same sense Sir Goodwin could not of shaped the events that transpired without the support of shareholders and the board of directors. However, it does not follow that Sir Goodwin should be exonerated from any misconduct or incompetence for his actions. Rather, a more comprehensive and realistic approach is required in viewing this case from a larger perspective and considering the culture that surrounded and permitted the CEO to play the lead role in the chain of events that brought RBS to its knees.
From an even broader perspective, you can also examine the commonalities shared by peer organizations within the industry to shed even more insight into this case. RBS was certainly not the only bank to improperly mitigate its exposure to the sub-prime market failure that ultimately resulted in many of the top global banks seeking governmental bail outs to cover their obligations. When viewing the industry from this level, the question remains to what extent of the crisis is systemic in nature caused by inefficiencies in the market. Hence, the perspective moves to that of governments and their role in regulating markets to prevent risks associated with such occurrences to escalate in the future of the global economy.
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Benchmarking should not include sensitive data or negative advertising using sensitive data to put down the other company. Confidential information must not be shared without the proper confidentiality contract in place, and confidential information should not be illegally obtained from competitors. After internal cost disadvantages are found, steps should be made to correct them by revamping the value chain system, moving high cost activities to lower cost areas, implementing cost-saving
International mergers and takeover processes are positively influenced by efficient control by the parent country which may lead to the formation of a direct link between protection of investors and a companies' access to debt financing (La Porta et al., 1998 as cited in Martynova and Renneboog, 2008). Martynova and Renneboog in the year 2007 explained that debt financing is directly related to merger and acquisitions across the border
Similarly, the simple fact is that with a merger nothing remains static forever -- growth cannot occur unless flexibility occurs. Some flexibility is required here, and there may be times when transfers will need to be solidified. Technology In most cases, systems and technology will improve based on greater efficiencies. However, it is also likely that basic input and programs will require change and flexibility as well -- what two companies use
The most popular amongst these options is satellite television. Satellite television can be advantageous to consumers because there are more stations available to choose from and the price is the same or similar to that of cable television companies. Most recently the Internet has changed the manner in which people access the news, communicate with one another, and watch television programs. As a result cable television companies have attempted to
06 or 56.1% to $2.95 while Zhone shares fell down to $2.90 or 18%. Yet, of the new company, Zhone shareholders will own 63.2% and Paradyne shareholders will own 36.8%. (Zhone to Buy Paradyne in Stock-Swap Deal, Says 2Q) Even the Paradyne seniors are being retained and the Chairman and Chief Executive as also the Chief financial Officer will remain as consultants for a period of two years. The analysis by
The conclusion whereat these researchers have arrived is that there is a negative mathematical relation between the probability of success of an M&a and the target company's leverage. An increasing leverage shows that equity is slowly substituted with debt, which reduces the fraction of voting right controlled by management and therefore affects the bidder's gain. Stultz finds that the probability of success of a takeover bid is decreasing as
mergers and acquisitions have had on the automobile industry over the years. The author examines the benefits of the Daimler/Chrysler merger and how the strategy provided a positive impact on the resulting company. There was one source used to complete this paper. Throughout the history of business, mergers and acquisitions have been a fact of life. Whether they were conducted through a mutually agreed upon blending, or taken over with